Sectors of the Indian Economy

Question

Describe the provision of government providing electricity to private sector.

Answer

There are some activities, which the government has to support.

(i)The private sector may not continue their production or business unless government encourages it.

(ii)For example, selling electricity at the cost of generation may push up the costs of production of goods in many industries. Many units, especially small-scale units, might have to shut down.

(iii)Government here steps in by producing and supplying electricity at rates which these industries can afford. Government has to bear part of the cost.

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