debate on the topic what can be do to improve electric system of india is it possible
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Answer:
The discussion of the theme “Should electricity be a right?” was held at the IGC India Research Conference on 10 September 2019. The panellists included Robin Burgess (Director, IGC and Professor of Economics, London School of Economics and Political Science), Anant Sudarshan (Executive Director-South Asia, University of Chicago), Michael Greenstone (Milton Friedman Professor of Economics, University of Chicago), and R. Lakshmanan (Executive Director, Rural Electrification Corporation Ltd). The discussion was moderated by Rahul Tongia (Fellow, Brookings India).
Should electricity be a right?
Introducing the issue, Rahul Tongia remarked that thinking about whether electricity is a right is relevant in framing how the electricity is regulated and governed, which then determines how cost effective it is. This tension – about how we govern, regulate, price, control, and ration it – is really at the heart of a lot of issues of development.
The event was held in New Delhi ─ by most natures, the richest state in India ─ which provides among the highest tax-payer subsidies for electricity in the country. A month back the government announced free electricity up to 200 KW hours per month.
The consequences of viewing electricity as a right
Robin Burgess’s ideas broadly revolved around arguing that electricity is not a right. Electricity is needed however to operate any modern productive activity thus having direct links to growth. Lack of access or very patchy supply of electricity constraints anybody’s ability to take part in any productive activity.
In developing countries like India, the distribution companies face losses due to several reasons including – transmission & distribution losses, people not paying for their electricity, and people stealing electricity. He believes the root cause of this is that people view electricity as a right. Due to this, a ‘vicious cycle of low payment and restricted supply’ is formed as shown in the figure below.
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