‘Subsidy Payments Should Be Done Upfront’
  • Elizabeth George
  • Feb 04 2014

February 4: Pramod Deo, former chairman of CERC, says that a power discom’s licence can be cancelled only on valid grounds. He says that while the government is free to subsidize certain services to consumers, but the law is clear that the subsidy payment has to be made upfront to avoid tariff shock for consumers. The payment of subsidies should not be done by utilities who work on commercial principles, he adds.