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The Weakest Link

The Weakest Link

Electricity distribution to the end consumer has been identified as the weakest link in the power value chain. For this sector to turn around, nothing less than a complete makeover is required of various aspects of the distribution matrix.

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Six states agree for discom debt rejig package

Six states agree for discom debt rejig package

For the Union governmentÂ’s debt restructuring plan for State-owned power distribution companies, at least six states have agreed to subscribe. The deadline for States to opt for the package has been extended by three months and would now end on March 31. The three-month period would be used to accommodate agreements by more states and ensure consensus building among stakeholders.
Once accepted by all states, the Rs 1.9-lakh-crore package is expected to bail out financially-stressed distribution

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Shunglu report: Can SEBs finally breathe easier?

Shunglu report: Can SEBs finally breathe easier?

Under pressure from banks, who are refusing to lend, state utilities are poring over the new reports by Shunglu and BK Chaturvedi Committees. Is franchise the best way forward, though? At 31 percent, the national average on AT&C losses are unacceptably high. Quantified, this amounts to nearly Rs 70,000 crore of losses, and the Finance Commission fears that this amount will rise to Rs 1.16 lakh crore by 2014-15.