subsidy: View: Ringfence reforms to protect them from freebie tradition

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Prime Minister Narendra Modi‘s remarks in a current speech at an occasion in Bundelkhand echoed throughout the border. Talking on the political tradition of dispensing freebies, Modi’s reference to “free revdi” appears to have rubbed his political rivals the unsuitable means whereas placing the tradition of entitlement underlying freebie politics to mainstream debate.

India has not had an sincere debate on this tradition of entitlement and its many political manifestations in authorities schemes and insurance policies. A sterling instance of this lack of honesty is Delhi. For practically two years now, Delhi, ruled by Arvind Kejriwal-led Aam Admi Occasion, has been the beneficiary of free electrical energy for payments beneath a sure threshold. Delhi is just not solely dwelling to the political and bureaucratic elite but in addition a large spectrum of media activists, non-governmental organisations and is the hub of activism of every kind, together with of the inexperienced hue. It’s hanging that regardless of being the nerve heart of such activism, there has not even been a murmur in Delhi in opposition to this scheme of free electrical energy whereas the residents are lectured endlessly on air pollution and local weather change come November-December yearly.

It’s this lack of honesty that has inspired irresponsible politics of free electrical energy to be exported to different states. Little surprise thus that Kejriwal, throughout a current go to to Gujarat, promised to deliver his coverage of free electrical energy to the state forward of state meeting elections due later this 12 months.

One wonders if Kejriwal was unaware of the historical past of subsidised electrical energy in Gujarat and subsequent reforms or if he was attempting to show the facility reforms clock again in Gujarat?

Gujarat, earlier than the appearance of Modi as chief minister in 2001, was the sufferer of the worst sort of freebie politics over electrical energy provide. Flawed insurance policies of Eighties that noticed rampant misuse of subsidised electrical energy within the state contributed immensely to environmental harm, depleting floor water whereas doing little to make sure steady energy provide. Worse was the fiscal harm from unpaid electrical energy dues.

It was on the again of this sordid state of affairs that Modi launched one of the daring and progressive reforms within the energy sector by means of Jyotigram scheme. The success story of Jyotigram is nicely documented within the not too long ago launched ebook Modi@20 – Goals meet Supply.

Writing on Jyotigram, famous economist Ashok Gulati explains how the facility sector reforms contributed to improved groundwater desk, steady energy provide and sustainable funds of the facility sector.

It was thus galling to see this try to show the clock again on energy sector reforms in Gujarat with this irresponsible promise of free electrical energy.

It’s unusual that probably the most vocal of environmental activists fall fully silent on irresponsible politics of subsidies and freebies which might be prone to trigger harm each to the surroundings and to funds.

Elevating the problem of energy reforms, the Prime Minister not too long ago highlighted the massive pendency of dues to central energy era corporations and to the facility distribution corporations from numerous state governments. Little surprise that the states reminiscent of Maharashtra, Tamil Nadu and Telangana, amongst others, with highest pendency have seen unsustainable subsidy politics. Punjab and Rajasthan additionally had the very best steadiness subsidy receivable by discoms, operating into tens of 1000’s of crores of rupees.

The politics of “free revdi” can also be lazy politics for it takes the political shortcut of entitlement looking for relatively than doing the onerous work of accumulating political capital to pursue difficult-to-implement reforms.

Giving a free cross to such freebie politics is just not merely mental dishonesty however can also be myopic for invariably within the wake of irresponsible schemes emanating from the politics of “free revdi” are everlasting prices to the surroundings.

One hopes that Gujarat roundly rejects any try to show the clock again on reforms by looking for to import flawed and irresponsible schemes that are additionally contributing adversely to local weather change.


The contributor is Former CEO, Prasar Bharati

chopraajaycpa@gmail.com
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