(a) whether the Indian Industry pays three times more for power than the Chinese
Industry does;
(b) if so, the reasons therefor; and
(c) the steps taken by the Government to reduce the cost of power to Indian Industry?
(a) whether the Indian Industry pays three times more for power than the Chinese
Industry does;
(b) if so, the reasons therefor; and
(c) the steps taken by the Government to reduce the cost of power to Indian Industry?
THE MINISTER OF STATE IN THE MINISTRY OF POWER ( SHRIMATI JAYAWANTI MEHTA )
(a) : Average tariff paid by industry in China indicates that the tariff for
industrial consumers in India is about two times higher.
(b) : In India Industrial consumers pay a tariff higher than the cost of supply to
cross subsidise domestic and agricultural consumers who pay a tariff below the cost of
supply.
(c): Government of India enacted the Electricity Regulatory Commissions Act
1998. According to the provisions of this Act, one of the guiding principles for the State
Commissions while determining tariff is that the tariff progressively reflects the cost of
supply of electricity at an adequate and improving level of efficiency. It also provides
that if a state government requires the grant of any subsidy to any consumer or class of
consumers, the State Government shall pay the amount to compensate the person affected
by the grant of subsidy in the manner the regulatory commission may direct.