Why cost of power so high in India ?

[Sehwag1830]

I mean cost of electricity per unit on average is Rs 4 per unit in India . Whereas the cost of power per unit is around Rs 1.5 per unit in China .Why such a huge difference ? Are Indian government and private companies cheating honest people ? Will manufacturing take place at such high cost of power ? Cost of cement per ton : India : Rs 5000 China : Rs 2000. Why such a huge disparity ?

[IKnowU]

1. Efficiency 2. Efficiency 3. Demand exceeds supply 4. Lack of alternatives 5. Efficiency

[Stuge]

Efficiency as in ? you mean to say poor quality transformers etc ?

[IKnowU]

Efficiency as in ? you mean to say poor quality transformers etc ?

Everything. Most of it is wasted, lack of proper infrastructure, supply not equally distributed etc.

[Tiger80]

I mean cost of electricity per unit on average is Rs 4 per unit in India . Whereas the cost of power per unit is around Rs 1.5 per unit in China .Why such a huge difference ? Are Indian government and private companies cheating honest people ? Will manufacturing take place at such high cost of power ? Cost of cement per ton : India : Rs 5000 China : Rs 2000. Why such a huge disparity ?

What is your source cost of electricity pricing? http://en.wikipedia.org/wiki/Electricity_pricing According to wiki list China power tarrif is 16 US cents which means close to 8 rupees

[Sehwag1830]

That is for Solar and Wind not thermal.

[varun]

The chinese government keeps the prices subsidized. Anyway, they are now having to increase prices. Look at this article from http://www.bloomberg.com/news/2011-11-30/china-lifts-electricity-prices-caps-coal-costs-amid-power-profit-squeeze.html

[DomainK]

Reliance really took the cost really up. People started getting bills into tens of thousands and Reliance had this policy of pay first before complaining.