ELECTRICITY SUPPLY: EVOLUTION AND REFORM 115


In April 2000, after announcing the proposed tariff increases, APERC con- ducted a forum with approximately 80 organizations and a four-day consulta- tion with 26 organizations, including representatives of agriculture groups, domestic households, businesses, large-scale industry, railways, and others. According to the World Bank study:


This time, there was a substantive exchange of views with groups putting forward proposals for changes in the system of billing, using competing arguments of equity and fairness. There was a recognition by many users that the mounting losses in the system needed to be addressed but many remained unconvinced that all cost-saving mea- sures had been taken to minimize the need for a tariff increase. Farm- ers continued to hotly contest estimates of unmetered agricultural use. The press was not given access to the proceedings, presumably due to lack of space in APERC premises, and was provided summary information in the evening. (World Bank 2003a, 5)


In July 2000, APERC issued a tariff order increasing average tariffs by 15 percent, agricultural tariffs by 50 percent, and residential tariffs by 69–300 percent (World Bank 2004d). The tariff structure also included incentives for farmers to switch from a flat rate to metering, which created a steady stream of applications (World Bank 2003a). APERC argued that it had altered the tariff structure to address several concerns expressed in the consultations, and the government pointed out that more than 60 percent of the households (with usage below a certain amount) were not affected, but these measures were not sufficient to prevent massive public protest. The opposition parties helped organize the protest, which included hunger strikes, demonstrations, and assembly walkouts. Eventually, the demonstrations turned violent, and three activist members of the CPI-M were killed by police gunfire on August 28, 2000.4 Although the government did not roll back the tariffs, it made no further major efforts at cost recovery in subsequent years (World Bank 2004d). Otherwise, however, the government continued with its power-sector reform program, which included the creation of four distribution companies (DISCOMs), institutional-capacity building, and other measures to increase the efficiency of the sector.


In the field of water and irrigation policy, the Andhra Pradesh Water, Land and Trees Act (APWALTA) was passed in 2002. This has been described as “one of the most comprehensive pieces of legislation on water conservation


4 See Hindu (2006c).


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