Insta
Subsidising Electricity: Working With DISCOMs For Direct Benefit Transfer To Poor, Says World Bank
Electric cables in rural Maharashtra (Satish Bate/Hindustan Times via Getty Images)
India will soon be implementing a direct benefits program (DBT) to ensure affordable electricity to the poor households in India, Financial Express has reported, with the World Bank planning the scheme in collaboration with state power distribution companies. The scheme will emulate the ongoing LPG DBT scheme.
Senior Economist of World Bank South Asia Region Fan Zhang praised the reform in distribution of LPG subsidies. He told that the real-time cash transfer programme was a good example of how subsidies should be given to poor households.
The World Bank released the report titled “In the Dark: How much do power sector distortions cost South Asia" on Monday (17 December 2018). The report estimated $86.1 billion economic cost due to distortion of the power sector in 2015-16.
He added that subsidies were not the main cause of distortions in power sector. Coal supply at a higher price is affecting the power sector in India according to Zhang.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.
Latest
