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Electricity bills rise continuously, but State Distribution Companies (DISCOMs) are struggling financially. What is the reason for this?
In this episode of Energonomics, Richa Mishra delves deep into issues that are affecting the power sector in India. In this episode, we take a look at the Union Power Ministry’s rules that introduce a series of strategic reforms to resuscitate struggling DISCOMs.
The rules streamline accounting, reporting, billing, and subsidies to DISCOMs. It also set a path to reduce AT&C loss and give proper Return on Equity (RoE) for the investors. Most importantly, these reforms seek to bridge the gap between costs and revenue, ensuring effective cash flow management and lessening the need for frequent adjustments. But, there is a problem -- electricity is a concurrent subject, so both the States and the Centre make rules for the sector’s functioning. This could exacerbate DISCOMs’ financial strain.
Stay tuned to Energonomics for more insights into the pulse of India’s power sector!
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