REGULATION | Cesar Tordesillas, India

Indian state governments criticized for non-payment of power subsidies

India's Minister of Power Sushilkumar Shinde criticized state governments for non payment of subsidies promised to the power utilities during his address to the State Ministers of Power.


The minister pointed out that in order for the utilities to run on the envisaged commercial lines, it is essential that governments release the subsidies, that too in advance, as stipulated in the Electricity Act, 2003.

If the subsidies, which are not paid, it will eventually lead to load shedding and customer unrest, Shinde has said. Moreover, the current situation where the utilities have been taking loans to finance the ever increase gap between revenue and expenditure, the situation is rendered unsustainable in the long run.

The Ministry of Power had earlier sent a letter to the states seeking implementation of the said agreements, even as implementation of MOUs still leaves a lot to be desired.

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