One of the biggest challenges for the
newly-appointed Delhi Chief Minister Arvind Kejriwal is reducing
electricity tariffs by 50 per cent which can be done only if it doles
out subsidies, say experts.
Aam Aadmi Party led by Kejriwal, in its manifesto, had promised to slash power tariff in the city-state by 50 per cent.
“It is unlikely that the utilities can
bring down the electricity tariffs by 50 per cent without government
providing them with cash subsidy,” Debashish Mishra, Senior Director,
Deloitte India said.
However, he added that there may be
scope for further loss reduction in distribution, demand side management
measures and cost optimisation in O&M (Operation &
Maintenance).
“In the short run, it will be a viable
idea to identify a category of customers where such subsidies can be
targeted and their tariffs reduced to the extent promised by AAP (Aam
Aadmi Party),” said Sambitosh Mohapatra, Executive Director, PwC.
Source: Financial Express
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