 "Mumbai cutting tariffs will force a power crisis in the state")
Editor’s note: This is a reader comment by Bala on the article AAP effect: Maharashtra cuts power tariff 15-20% except in Mumbai Apart from light edits, the comment has been left as is. Please try to recall what happened in Delhi about 10 years ago. DESU went bankrupt and power supply had to be privatised. Then costs went up to meet market realities (purchase costs, transmission losses, salaries, etc). [caption id=“attachment_1350731” align=“alignleft” width=“380”]  PTI[/caption] To keep the prices artificially low, the companies were permitted “accelerated depreciation”, but that only resulted in lower tax receipts by all levels of government (lower sales tax and lower corporate tax). Now they are in the position where they will need to hike prices again to remain profitable. The same will happen throughout the country when state distribution authorities go bankrupt.
Please try to recall what happened in Delhi about 10 years ago. DESU went bankrupt and power supply had to be privatised.
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