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Beneficiaries of IPS subsidy and impact of tariff hike

, : Beneficiaries of IPS subsidy and impact of tariff hike. Economic and Political Weekly 31(51): 3315-3321

A study conducted in Maharashtra, India, examines the distribution of the subsidy on the electricity tariff for irrigation pumpsets (IPS). The review of electricity tariff for IPS users is one of the most controversial issues in current power sector reforms. Findings indicate that the distribution is highly skewed and it is suggested that a consumption based tariff instead of the present flat tariff is more appropriate, and the impact of such a movement is assessed.

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