Even though Gujarat discoms have emerged as the best performers in India, the power ministry has cancelled a ceremony to felicitate the top-ranking distribution companies, highlighting the tension between Centre and Narendra Modi
After announcing a debt restructuring package for the state electricity boards, the government today said it would bring a draft model bill for fixing responsibility on state discoms.
India's power distributors had accumulated losses of Rs 2.46 lakh crore up to the end of the fiscal year ending March 2012, Power Minister Veerappa Moily said on Tuesday.
For the bailout of discoms to succeed, governments and discoms must be held accountable for their commitments - and not use this opportunity provided by the cleaning up of their books as a starting point for another round of populist profligacy.
Analysts say failure to charge the full price for electricity is unsustainable with rising costs for fuel.
Any more CDRs will have serious repercussions on the banking system as it comes on the back of an already historic rise in CDR cases due to deepening slowdown in the economy