Steps to ensure turnaround of Discoms stressed


Steps to ensure turnaround of Discoms stressed

The Reserve Bank of India has stressed the need for the State government to take necessary steps for the turnaround of the distribution companies (Discoms) and eliminate the revenue gaps in a time-bound manner.

In its recent report on the States’ Finances, the RBI said the reduction in revenue from grants to Discoms in the years 2018-19 to 2020-21 could potentially increase the losses of Discoms, particularly in five States, including Telangana. This could entail significant fiscal outgo with a greater share of these losses mandated to be funded by the States.

“This makes it incumbent upon the States to take the necessary steps for the turnaround of Discoms and to eliminate revenue gaps in a time-bound manner,” the report said. Uttar Pradesh, Jharkand, Rajasthan and Andhra Pradesh are the other States quoted in the study. Read More

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