Free power is a favourite promise for some political parties. In the recent Karnataka Assembly election campaigning, the Congress party promised 200 units of free power per month per household. The promise is already starting to bear negative effects less than two weeks after the party came to power in the most prosperous South Indian state.
As per a Times Of India report, industries are considering taking a flight from Karnataka after the government conveyed to them that one unit of electricity will now cost Rs 9 instead of Rs 7. The provision of free power to households means that the industry will have to bear some financial burden.
Not just Karnataka, Punjab's free power scheeme is notorious too. The AAP government in Punjab followed a 'Zero Bills' policy after coming to power. "As many as 87 per cent of the total 74 lakh domestic consumers in Punjab didn't get any bills in November 2022," a report says. Four months later, a national daily reported that Punjab's coffers were being drained. Thousands of crores have been spent by the Punjab governemnt on power subsidies.
Investors will be scared if populism continues. Political parties must keep India's future in mind before making reckless promises.
