Indians may soon get cash for using electricity, if a new model along the lines of LPG Direct Benefit Transfer works out. In order to provide affordable electricity to the poor households in India, the World Bank is working with state power distribution companies in the country to emulate LPG DBT scheme, under which consumers are given cash subsidy for buying LPG at market price.
While praising the central government’s LPG reform, Fan Zhang, a Senior Economist in the Office of the Chief Economist of the South Asia Region at World Bank, told The Indian Express that removal of price distortion due to subsidies and then the introduction of real-time cash transfer is “a good example of how to give subsidies and protect poor households.”
“The World Bank is already working with some state distribution utilities in deciding new ways of providing direct cash transfer, rather than create a distortion in electricity price, to protect the poor. Read More