The energy bill of the Bihar State Electricity Board (BSEB) is already staggering. The government of Bihar provides nearly Rs 70 crore every month to the BSEB as a subsidy, to keep its financial balance. Over and above, Bihar has to buy about 80 to 90 MW energy at a premium price daily. The question for the Bihar government is this: Will public finance prudence allow the state government to subsidise energy needs of a foreign government, a Union ministry and a public sector undertaking located in its own geographical area, indefinitely? If the exploitation of the economic periphery continues, won’t it erode the state’s legitimacy?

The writer is member secretary, Asian Development Research Institute , Patna