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Exclusion of Restructuring Package: A Move Towards Commercialization of Discom

News

The government has ruled out the possibility of a central package for debt-ridden staterun power distribution companies, and has insisted that it's time that they get their act together.
Source: ET

 

SNP Insights

Possibility of ruling out central package for state discom would certainly create a sense of accountablilty and commerciality among the distribution utilities. This may help in improving the cumulative loss of about INR 2000 Billion of State Discoms. Instead of providing free packages to discoms, government should use that in upgradadtion of Transmission and Distribution line for the improvement of whole value chain of power sector.  
 

Source: SNP Infra Research