Power tariffs for farmers to be linked to water table

The tariff policy under the Electricity Act is the guiding principle for setting rates

To check the overutilisation of groundwater, the Centre has proposed that states link power rates for farmers with the water table in an area concerned and water requirements for crops there. 

Alongside, it has also asked states to retire any subsidy to farmers in areas that have low water tables.

The Electricity Act provides that geographical position could be a criterion for tariff differentiation. The Union government wants to bring in the change through an amendment to the National Tariff Policy. The lower the water table in an area, the higher would be the power tariff. 

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