Power woes: Govt cracks whip on defaulting discoms, but is it enough?


Power woes: Govt cracks whip on defaulting discoms, but is it enough?

India’s energy needs have always remained exhaustive and, as a result, the power sector’s desired pace of growth has been the biggest challenge for the Indian economy. With an estimated population of more than 1.3 billion and the Government of India’s recent policies to strive for 24×7 power for all, it is but natural that the country is faced with an ever-increasing demand for energy. As per the CEA’s June 2019 report, India currently has an installed capacity of around 357.88 GW with the private sector accounting for 46.4 percent of this capacity.

Private sector participation in the power sector has seen a series of reforms in the past decade, albeit encountering major roadblocks ranging from land acquisition issues to coal shortage. One such hindrance has been the lack of proper implementation of the payment security mechanisms in the power purchase agreements (PPAs) and recovery of dues from the distribution companies (discoms). Read More

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