Call for Reform of Discom's Gathering Steam

Business Standard wrote on the topic of Power Discom reforms – the second time in two days. The important points raised by the Shunglu Committee are:

• Huge Losses at the Discom’s:

During the five years (from 2006 to 2010), losses were Rs 1,79,000 crore before subsidy and Rs 82,000 crore after subsidy. These losses were primarily because of the gap of about 0.60/kwh between average cost and average revenue

• Creation of an SPV to take over bad assets (details in our previous post)

creation of a Special Purpose Vehicle that would buy the bank loans of discoms, subject to various conditions

• Creation of a new post of ‘Power Utilities Chief Executive’

power utility’s chief executive should be appointed through an all India selection process

Try India’s first RPO calculator here