At a time the outstanding dues of the power distribution companies are on the rise, Union power secretary Alok Kumar has said there is a need for a political consensus in the interest of viability of distribution companies.

The outstanding overdue amount in January 2022 has reached Rs 1,37,363.80 crore as per the Praapti portal of the ministry of power and has been on a rise since October 2021.

“There has to be a certain political consensus that if India has to develop, it will require robust and reliable electricity supply for households, industries, offices, shopping malls. That cannot come unless our distribution companies are viable and run on sound commercial principles.

“The key thing is regular and periodic tariff determination reflecting full cost tariff,” said Kumar at an Indian Chamber of Commerce organised event on Monday.

Electricity is a concurrent subject and determination of tariff lies with the state authorities and political considerations often prevail in determining the price of power in a state.

Poll bound Punjab for instance has reportedly slashed electricity tariff by Rs 3 per unit last November for domestic consumers with loads of up to 7KW.

Bengal had announced a subsidy scheme in 2020 for consumers with a connected load of up to 0.3KW with quarterly consumption of up to 75 units.

Kumar said that the central government launched a new scheme in July 2021 which focuses on improving the financial sustainability and operational efficiency of the distribution sector.