10% - 15% >15%-20% >20%
Timely tariff growth could have prevented this: If power tariffs in India had not been artificially suppressed and had increased in line with other household expenses over the five years ended FY10 i.e. at 10.6 per cent p.a., additional revenue of about `95,000 crore
crore registered by utilities over this five-year period would have turned into a profit of about `7,700 crore. Alternatively, had power tariffs kept pace with inflation and increased in line with the wholesale price index (WPI) over the last five years i.e. at 6.5 per cent p.a., additional revenue of about `31,000 crore would have accrued to the utilities and losses would have reduced to this extent as against the actual loss of `87,269 crore. Tariff revision in states has begun, but further hikes are needed: The trend of anaemic tariff
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