Q.3 Electricity prices vary not just among end-users, but also between states due to the complex patchwork of different taxes and subsidy regimes. What are the implications of this for unequal development among the states? Suggest the way forward. (10 Marks)

Mentor’s comment-
  • https://www.thehindu.com/opinion/op-ed/on-an-equal-footing/article65068161.ece
  • In the intro, mention the disparity of income among the states.
  • In the body mention that the price and quality of power plays an important role in investment and industrialisation and high-income states get the edge on that count.
  • In the suggestions mention eliminating the price discrimination by synchronizing all the grids. Next mention the inclusion of electricity duty under the GST.
  • Conclude by mentioning that the move will benefit the whole nation through rational tax devolution and, therefore, provide the opportunity to attain higher growth.
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Karun Kumar Takhele
Karun Kumar Takhele
7 months ago


aarti bhimani
aarti bhimani
7 months ago