Power reforms trip: Tariffs still a sore point with states

Bihar, Maharashtra, MP, Jharkhand are among states that announced higher tariffs for 2017-18

Many states have rationalised power tariffs, setting in motion reforms in electricity pricing. Bihar, Maharashtra, Madhya Pradesh and Jharkhand are among the states that announced higher tariffs for 2017-18.  There are, however, notable exceptions like Uttar Pradesh, Rajasthan and Delhi.

Bihar led with a 20 per cent rise, across brackets. It, however, also introduced direct subsidy transfer for some sections of consumers, thereby reducing the impact on the revenue of power distribution companies (discoms). Jharkhand’s raise was 12 per cent, Madhya Pradesh’s 9.5 per cent and Karnataka raised by 8.1 per cent. 

The central government’s programme for debt restructuring of