worsen beyond repair,” said an official, adding tariff hikes are “absolutely necessary.”
The average cost of electricity comes to about Rs 6 per unit, while the average revenue realised is around Rs 4. “While the cost of electricity has gone up many notches, the hike has not been in tandem, driving the corporation into the red. If we do not rationalise tariff for the domestic sector, we are sure to sink,” said another official. “If the state government backs out, the bailout package may fall through, as nobody would be willing to give financial guarantee for populist decisions,” he said.