Tuesday, August 26, 2008

Indian farmer is `powerful' only on paper and in official records ?

The Indian farmers mostly receives subsidized power . Further , there are some state like Tamil Nadu where the farm tariff was not charged and rural electricity was free.Then after almost a decade of high-level effort to bring the charges (tariffs) that farmers pay for electricity more nearly into line with the costs of supply.

India has barely made a dent in the longstanding and increasingly uneconomical practice of subsidizing power to agricultural consumers for irrigation. Progress has been slowed by the understandable but misplaced concern that higher tariffs would harm farmers--and that the injured parties would take political revenge on the reformers. .

The costs--in power outages, damaged pumping equipment, irrigation foregone because of power losses, distorted investment patterns, among others--exact a heavy toll from ordinary farmers. In the form of deficits, the subsidies also sap state budgets of funds that could otherwise be invested in rural infrastructure, extension services, and advanced agricultural technology. As unrecoverable costs, they starve suppliers of funds for maintenance and improved service. On the other side of the coin lie the benefits that reliable flows of power and good quality of other electricity services could deliver to rural India.

The system by which the agricultural power consumption is measured by State Electricity Board (SEB)rural creates inflated consumption figures.Much of the power consumption goes on the heading of Agriculture is not actually consumed by the agricultural community . Besides ,this unused power by agricultural gets routed to the hookers and other malpractioners who draw the consumption will illegal means.

Despite of this the nearly Bankruptcy situation of the State Electricity Boards, which are said to be the side effect of Subsidized agricultural consumption which is far from truth .

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