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Financial Crisis of DISCOMS: Need of the Hour is to Pave A Stringent and Permanent Way to Resolve the Issues

News

The financial health of electricity distribution companies (discoms) is a major concern as the government fights to accelerate the pace of growth in the Indian economy.

Source: live mint

SNP Insight

Untimely revision of tariffs, highly subsidised power, leakages in transmission and distribution have led to massive losses and consequent indebtness, leading to poor financial condition of DISCOMs. Although government is working on debt recast plan for the utilities, it's high time now to come out with a stringent and permanent solution to resolve these financial crisis, as if these losses are piled up for long, they may convert the utilities into NPAs.

Source: SNP Infra Research