Power Subsidies : A Reality Check on Subsidizing Power for Irrigation in India
After almost a decade of high-level efforts to bring electricity tariffs closer to the cost of supply, India has barely made a dent in the long-standing and increasingly uneconomical practice of subsidizing power for irrigation. Progress has been s...
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| Format: | Viewpoint |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2002/04/1799494/power-subsidies-reality-check-subsidizing-power-irrigation-india http://hdl.handle.net/10986/11350 |
| Summary: | After almost a decade of high-level
efforts to bring electricity tariffs closer to the cost of
supply, India has barely made a dent in the long-standing
and increasingly uneconomical practice of subsidizing power
for irrigation. Progress has been slowed by concern that
higher tariffs would harm farmers and thus undermine the
achievements of the green revolution package-cheap power and
water, new seeds and fertilizer-aimed at enabling the
country to feed itself. But a new study shows that a package
of rapid electricity sector reforms, including a move toward
cost-covering tariffs and investments to improve the quality
of power supply, would increase farmers' incomes by
40-100 percent over a six-year period. |
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