NK Jain, Vice Chairman of JSW Energy told CNBC-TV18, the poor financial health of state electricity boards (SEB) is the most critical issue facing the power sector. According to him, tariff hikes are imperative for improving the condition of distribution companies or discoms.
Anil Razdan, Former Power Secretary said structural reforms within the state discoms can improve the plight of these companies. He clarified that a strong message must be sent out to the discoms stating that they would be bailed out only when they mean business.
In the light of the CAG probe into the coal auction process, Union coal minister, Sriprakash Jaiswal, said, “The process of coal allocation was modified to make it more transparent. It was recommended that the bank guarantee also be included and advertisements were published about the modification."
Former power secretary, Anil Razdan says its premature to take a view on the losses incured by the government due to adopting faulty practices while allocating coal blocks to companies.