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Government moots for discom revival

Finance minister has allotted Rs 22,000 crore for power and renewable sector and has urged states to implement smart meters in next three years and also forestated that in near future consumers will have the option to choose right suppliers as per rate of power supplies. Power distribution companies are under financial stress and the power ministry has put extraneous effort in improving discoms performance.

Government is poised to bring schemes for revival of discoms and liquidation discoms dues. Amendments to Electricity Act may also impose hefty penalties on reneging of any kind of contract. Ministry is also working on a schedule for repayment of the discom dues from distribution companies to power plants over a period of six months. Government schemes will provide aids to discoms as long as they are adhering to the loss reduction trajectories. Such remedial measures are only going to work when DIscoms perform, else privatization of discoms through licensing, Distribution franchisee cost-sharing model is only the way to revival