An announcement to the effect was made by Bihar Energy Minister Bijendra Prasad Yadav in the Bihar Vidhan Sabha, where the budget session is currently underway.
Bihar government is mulling direct transfer of subsidy to consumers on electricity bill payments after large-scale protests were made against a proposed 55 per cent power tariff hike in the state.
An announcement to the effect was made by Bihar Energy Minister Bijendra Prasad Yadav in the Bihar Vidhan Sabha, where the budget session is currently underway.
"The 55 per cent tariff hike allowed by the Bihar Electricity Regulatory Commission (BERC) is without taking subsidy into consideration. Once we receive a copy of the order, we will take a decision on the subsidy," Yadav said.
"However, the government is thinking that instead of providing grant to the distribution companies, we can provide subsidy to the consumers in the form of direct benefit transfer (DBT). A decision will be taken on it in the next three-four days."
On Friday, the regulatory authority had approved an overall hike of 55 per cent in the tariff as against the 84 per cent demanded by the power distribution companies. The steep increase evoked protests from the people as well as the Opposition parties, which disrupted both houses of the Bihar legislature over the issue on Saturday.
While urban consumers across different slabs will have an additional burden of 47-92 per cent, rural consumers will have to pay 123-174 per cent more, leader of opposition in Bihar legislative council Sushil Kumar Modi said, adding, "The government is considering to bring down the overall hike to 28 per cent, but even that is huge considering that the last couple of hikes were in single digits."
The Opposition was also quick to raise an eyebrow on DBT of subsidy, asking if the state government had adequate infrastructure to implement it. "The new tariff is effective from April 1 and billings will start halfway through the next month. Does the Bihar government have the resources to send the subsidies directly into the bank accounts of all consumers in such a short span of time," said Sushil Kumar Modi, leader of opposition in Bihar legislative council.
At present, the Bihar government provides subsidised power only to BPL, agricultural and rural consumers and the grant is given to power distribution companies. If the proposal is approved, it will be the first time urban consumers in Bihar will get subsidised power.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Power")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}