States should adopt direct benefit transfer (DBT) mechanism to provide any subsidy support to power consumers, a top power ministry official said today.
Power Secretary A K Bhalla observed that ideally there should not be any subsidy to power consumers in the country but if states intend to give any support, it should be through the DBT mechanism.
"Ideal situation should be that there are no subsidies," Bhalla said addressing at an Indian Energy Exchange event.
"What we are trying to say in our draft policy..if state governments feel that any set of consumers are to be subsidised, it should be given through direct benefit transfer mechanism."
On participation of foreign power suppliers like Bhutan on the country's power exchanges he said a proposal in this regard is on the table.
He was of the view that there should not be any limit to market of power trade in the country in exchanges.
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The national electricity policy provides for 15 per cent volume of short term power trade market of total electricity sale in the country.
At present, about 4 per cent of total power sale is traded on exchanges.
About debt laden discoms he said these should run like professional corporate and listed entities having system of payment of dividends. He was of the view that the discoms should have profit and loss account like any other corporate entities.
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