Why electricity tariff is going up? Who is the beneficiary? https://www.cenfa.org/why-electricity-tariff-is-going-up-who-is-the-beneficiary/ The Centre, in its over-exuberance to privatise coal mining, put many greenfield coal blocks for auction to private companies, which in turn, apart from not having enough ability to develop coal, already stand heavily indebted to PSU financial institutions and are driven once again to borrow from them.
Peoples Commission on Public Sector and Public Services (PCPS) in its Statement dated June 2nd 2022, attributed the coal shortage entirely on account of mismanagement of coal supplies on the part of the Central government. “Having created such a situation, instead of owning responsibility for it and offering to share the cost burden, it is unfortunate that the Centre should wash its hands off and transfer the resulting liability to the States”
The Union Ministry of Power issued several directives to the State power utilities to mandatorily import coal, 4 % by weight failing which the state would also lose entitlement to coal supplied by Coal India and other Indian sources. At the same time, there was no notice given to the states to prepare for the import of coal.
Writes Thomas Franco in #RandomReflections this week!