Power distribution cos caught in debt trap as consumers oppose tariff hike

Discoms accumulated losses of about Rs 4.3 lkh cr till March 2015; need to debt to cover costs

Two months ago, Rajasthan rolled back a hike in power tariff on agricultural connections imposed in September last year. The hike had been opposed by both consumers as well as non-Bharatiya Janata Party (BJP) political parties.

This week, the Congress party sought the reversal of a 5% power rate hike in Uttarakhand imposed by its newly elected BJP government.

The Odisha Electricity Regulatory Commission is considering a plea for tariff hike from the state’s two electricity generating companies. However, both power activists and consumer associations have objected to the proposed hike.