Power subsidy boon
The good performance of power companies in Bihar on the aggregate transmission and commercial (AT&C) losses is set to reduce the subsidy burden of the state government in 2018-19.
Apart from providing the subsidy amount to power companies for giving relief to consumers, the state also gives additional funds to the companies to meet their AT&C losses.
In 2017-18 the state government had given a subsidy of Rs 2,952 crore, which had been passed on to the consumers, while another Rs 1,476 crore had been given to the power companies to meet the AT&C loss.
In 2018-19, the state government has announced a subsidy of Rs 4,137 crore that would be passed on to the consumers whereas the subsidy for AT&C losses has not yet been announced.