New Delhi: Well-to-do households in Jharkhand get over twice the amount of power subsidies that poor households receive, says a new study that surveyed over 900 households in rural and urban areas. Flawed subsidy design enables more affluent homes to benefit more by using more electricity.
This problem is not unique to Jharkhand and could be common in all states that have similar power subsidies, it suggests. Restructuring and improved targeting can help free up more than Rs 300 crore for Jharkhand, and a good portion of the Rs 110,391 crore ($15 billion) for all states, six times more than the 2020 budget estimate for the Union Ministry of Power.
