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Patna : Bihar Government on April 18, 2018, declared electricity subsidy for various category of consumers in Bihar. But, Bihar Industries Association (BIA) is extremely surprised and distressed to note that though the total subsidy has been increased from about Rs 2,800 crore per year to Rs 4,000 crore per year, the subsidy for HT consumers has entirely been removed and made zero.
Earlier, Bihar Electricity Regulatory Commission (BERC) had increased tariff by about 10% for all consumers although allowed T&D losses have decreased from 30% to 22%. In a welcome step, the government subsidy for non- HT consumers has been increased to the extent of the tariff hike, thus keeping the net tariff for non- HT consumers at the same level. However, not only such an increase in subsidy amount has been denied to HT consumers in an unjustified manner rather the subsidy has been entirely removed, according to BIA Secretary Anil Kumar Sinha.
The BIA said that this retrograde step would make business in Bihar particularly industries, non competitive and non- viable. In many sectors like handloom, food processing,etc, it may also lead to industrial sickness and largescale unemployment. At present, industries in Bihar are already facing acute national and international competition and total removal of Government subsidy that too only for HT consumers, is beyond any logic or justification, it said. It has requested the Bihar Government to reconsider this step and increase the Electricity subsidy to HT consumers as well instead of removing it.