Tuesday, August 13, 2013

Are farmers burdening on power sector directly and on industries indirectly?



            Remember the point got raised while the discussion on power sector..? the subsidy which is being offered by government of various states in India towards farmers, is one the reason for the debt on respective SEB. Even the extension of the same issue was ' why industries should take the burden of this subsidy'?  Well , i strongly disagree with the argument
           at first we can not compare these two sectors ( agree & industry ) on 'only' this power issue. There are other issues that we need to take into account if we want a comprehensive overview. for example; if government is subsidizing farmers for power , then are they not assuring and subsidizing water to industries? are they not subsidizing industries on land cost? are they not giving stamp duty & electricity duty exemption? In state of Maharashtra , 75% reimbursement of cost of water and energy audit being offered to industries.
           Considering all this still can we blame poor farmers for putting load on SEB? Ground reality is farmers are ready to pay electricity at commercial  rates, only thing is we need to get ready for inflation  in food products. Rather it will be good for farmers to pay electricity bills at commercial price and then demand for regular & without fluctuation power supply.
           There are many loopholes in goverment policies which can be rectified without much friction. but at the end of the day its all blame game and politics. In fact government can make farmers stack holders in such projects directly by issueing some bond / shares. Perspective may get changed.
* Just for sample here is the link of MIDC about their policies for industries.
http://www.midcindia.org/Lists/Policies%20Circulars%20and%20Notification/Attachments/87/Industrial%20Policy%20of%20Maharashtra%202013%20-%20Highlights.pdf