Direct benefit transfer system for power subsidies faces criticism

NEW DELHI: The draft Electricity (Amendment) Bill released by the Centre is facing stiff opposition from stakeholders, with critics stating that making the proposed system viable will be a difficult task.

The bill proposes a direct benefit transfer (DBT) system for electricity subsidies, akin to that used for LPG. Currently, state governments transfer subsidies directly to power distributors (discoms) who collect subsidised fees from consumers.