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RE:What economic boost when drought hits four southern states.
by Darsheel on Jul 20, 2008 08:33 AM

The drought is because of poor rainfall. But an equally important fctor is the proliferaion of electric tubewells. This is becase of all the free electricity schemes the govt has in the rural sector- people leave the pumps on since it is free.

Consequently the water table has dropped across the State making it difficult for agriculture. This is exactly the thing your hated economists were warning about..but we (the govt of maharashtra et all) did not listen.

Reform these subsidies- target them to the needy only, replace them with a simple smart card that allows for discounts on agricultural inputs in lieu of subsidies, and price electricity at it's real cost. That



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If govt wins, will reforms get a boost?