State electricity boards reducing losses: Economic Survey

By IANS

New Delhi : The total commercial losses of state electricity boards are projected to come down to Rs.115.41 billion (about $3 billion) in 2007-08 from Rs.150.72 billion in the previous fiscal, an improvement of about 23 percent, the Economic Survey for 2007-08 has said.


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The net revenue-expenditure gap of the state power sector arising from subsidised power supply to agriculture and household consumers is estimated at Rs.289.73 billion in the current financial year, said the survey, tabled in the Lok Sabha Thursday by Finance Minister P. Chidambaram.

State electricity boards should be able to narrow this gap to Rs.116 billion with the help of a subsidy payment of Rs.141 billion from the states and a Rs.87.08 billion surplus generated from cross-subsidisation of industrial and commercial consumers, it added.

The survey has, however, expressed concern over the rising gross state power sector subsidy, which is projected to rise to Rs.431 billion in the current financial year from Rs.400 billion in the preceding fiscal.

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