Friday, 8 August 2014

Multiple service providers for various utility services

Most of the utility services in India like Electricity, Transport services are controlled by state corporations. It is high time, we explore private service providers for these purposes. Like telecom services, we should have multiple service providers for electricity with options available to the customer to choose. Instead of individual bus or taxi operators, we need transport corporations for providing services to commuters. Transport corporations are likely to be more organised and planned than individual standalone taxi or bus.

Transport corporations and Electricity service providers will try to compete each other for building their brand image. Govt. need to subsidise these corporations, if it wants to keep utility services cheap. It can use the losses of Govt. corporations for this funding.

Ultimately, the loss and subsidy will come down and services will improve due to competition. Moreover, the Govt. can slowly withdraw from these services.




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