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Removal of Cross Subsidy Surcharge may Impede the State Economy

News

MSEDCL is preparing proposals for reducing industrial power tariff of Vidarbha and if possible Marathwada too.

Source: ToI

SNP Insights

Reducing the tariff for industrial consumer by removing cross subsidy surcharge is likely to burden the state exchequer by approx INR 350 crore alone in Maharashtra, extending this to entire nation would easily surpass the INR 5000 crore. This would not only increase the regulatory asset of power utilities but also may red the state balance sheet courtesy financial restructuring program, hampering the overall growth of the state economy.
 

Source: SNP Infra Research