ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Muslims, BJP and Lok Sabha Elections

situation in the state has deterred the private sector projects from choosing Bihar as the location. The experience of inter-state exchange of power is also not encouraging. As S N Roy has brought out (The Economic Times, January 28,1998), there are apprehensions that surplus power may not be utilised except in certain emergency conditions. He ascribes this to high cost of power. For example, in the case of the Andhra Pradesh State Electricity Board, the cost of imported power, after accounting for the distribution losses, worked out to Rs 4 per unit at consumers' end against the average sale rate of less than Rs 2. Roy has therefore argued that the cost of power should be worked out on the marginal cost basis to encourage regular power exchanges. He has further suggested that the total incidence of wheeling charges should not form part of the cost of power. According to him, all existing DC links will continue to operate at part load only and the wheeling charges alone may exceed Re 1 per unit on the heavy investment being made to establish such links, He suggests that viability of DC links should not be the criteria in the interest of power exchanges. He argues that if these relaxations are not allowed, there may not be any flow of power from surplus to deficit regions.

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