Tariff hike: some caveats and reform proposals.

In this space, we will examine the non-tariff options to deal with problems of rising cost and circular debt, which has forced the government to propose the increase in power tariff. The government has announced plans to increase power tariff by Rs5.65 per unit, an estimated 40% increase. Without undertaking reforms and increasing efficiency, the tariff hike alone may prove to be counter-productive. [Extracted from the article]