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Govt is concerned on reduction of Power Discom Losses

Debt on power discoms has considerably risen to Rs. 84,719 crore in November 2019. Discoms poor financial condition have paralyzed their ability to make timely payments to generators. This constraints appropriate stream of capital in the generation and transmission segment of the power sector, which further slowly plagues the development and growth in the segment. Though government has put extraneous effort to catalyse timely payment through payment security mechanism, whose impact is yet to be administered.

Government is ambitiously target to reduce T&D losses to 15% in next two years, which now stands as 18.5%. If the issues like technical & commercial losses related to metering, billing & collection, is not timely addressed, it will risk viability of discoms in the long run.