We have the paradox of state electricity distribution companies bleeding heavily while consumers pay high prices for power
States are struggling to recover cost of electric supply
The health of Indian discoms has been worsening as they avoid revising their tariff, thereby increasing their revenue gap.
Ajay Jain, secretary, energy of the government of Andhra Pradesh, says the state is incurring 85 paisa loss on every unit of power produced. However, he is confident that there won‘t be any need to ask for restructuring of state discoms.
RS Ramasubramaniam, co-chairman of Feedback Infra, says power requirement has grown by 5 percent in the last 5 years, while availability has historically grown by 6-6.5 percent. Power contraction was around 10 percent in April 2015 versus historical growth rate.
The power minister Jyotiraditya Scindia in an interview to CNBC-TV18 said that in the last 6-8 months the sector had seen a lot of positive reformative steps and some very big ticket steps that were announced.