Power Ministry takes aim at free electricity promises in election campaigns

The power tariff must be fully updated and implemented as prescribed.

The tariffs should be set in a manner that reflects the actual cost of electricity for power distribution companies.

Any subsidies announced by the states should be completely transparent, with clear records maintained on a per-unit basis.

The subsidies declared by the state governments should be accurately reflected in their financial accounts.

The installation of prepaid meters in government offices is also mandated.

During the meeting, the power minister directed REC (Rural Electrification Corporation) and PFC (Power Finance Corporation) to submit a report within 15 days. The report must certify that for the year 2022-23, the beneficiaries receiving subsidized electricity have been identified and that the subsidy bills are being prepared in the name of the respective state governments.

According to sources, the objective behind these measures is to bring about comprehensive reforms in the power sector, minimizing losses from generation to distribution. "Such reforms are crucial to attract new investments in the sector, particularly with the growing demand for electricity anticipated in the future, driven by projects like semiconductors."

"Meeting this rising demand necessitates an increase in production, which can only be achieved through sector-wide reform," sources added.