Mounting losses of power discoms that have crossed $3 billion and other challenges are making the government go back to the drawing board. The urgency is apparent as a new tariff policy with an aim to empower the consumer has been sent to the Union Cabinet for approval.
State of discoms
A big thrust of the incumbent government is 24×7 electricity across major parts of the country. This has, however, remained a pipe dream despite the advances made by the country in achieving a power surplus two years ago.
To understand the inherent contradiction between surplus power and poor supply, one has to decipher the electricity value chain, which is a delicately stacked pack of cards where all stakeholders are precariously balanced.
At the root of the challenge to achieve universal electrification is the inability of the discoms (distribution companies) to maintain power grids and equipment, which impairs their ability to supply surplus electricity. Read More
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