Sixth Pay Commission: Power deficit to hit India

Sixth Pay Commission: Power deficit to hit India

Aug. 29: The Reserve Bank of India (RBI) in its annual report has warned that the sustained high projected rates of growth in the economy would be hampered if the problem of power shortage is tackled properly.

The annual report released on Friday said that during 2007-08 only 9,263 mega watt (MW) capacity was added against a target of 16,335 MW.

The RBI said the slow progress in capacity addition has accentuated the power supply deficits and any slippage in achieving the targets may worsen the situation further in the face of increasing demand for power from industry and other sectors.

The RBI has adviced the Central government to undertake a co-mprehensive agriculture revamp programme "as a policy priority to increase the production of varieties like wheat and pulses."

Furthermore, a regionally differentiated agricultural strategy needs to be implemented taking into account the local resource endowments, capabilities as well as restrains, it said.

The RBI has warned that finances of the Central government may come under pressure with the implementation of the Sixth Pay Commission, loss of revenues on account of reduction in duties on petroleum products, likely increase in fertiliser subsidy and the implementation of debt waiver and debt relief scheme for farmers.

Additionally, as the government may incur increasing liabilities towards issuance of oil and fertilisers bonds, the level of public debt will be impacted on.

The Reserve Bank of India has suggested that in its order to ensure that fiscal imbalances does not diverge from the budget estimates, "efforts are needed to improve tax buoyancy through widening tax base and further improvement in the tax administration."

Tags: 6th Pay Commission,Sixth Pay Commission

Source: http://howrah.org/business/26549.html