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Free power, subsidised rail transport fail to benefit the poor meaningfully

But the problems remain at the distribution end, where state-owned distribution companies or discoms dominate

Budget: Railway capex stays flat; revenue receipts set to cross Rs 3 trn
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Skewed pricing on the giant Indian railway network is another point of contention. | Illustration: Binay Sinha

Kanika Datta Mumbai

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One of the paradoxes of India is that the massive infrastructure subsidies that the central and state governments sustain in the name of helping the poor have brought limited benefits to these target beneficiaries but play a key role in stalling the ambition to attain “Viksit Bharat”, whichever way you choose to define it. Unless these subsidies are reassessed, India’s yearning to become a manufacturing powerhouse will be as elusive as ever — a reality that ends up doing a disservice to the poor. This is not to argue against subsidies for the poor and genuinely needy. But India is
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