Govt clears Rs 1.6 lakh crore reforms for power discoms in 12 states, J&K – Times of India


NEW DELHI: The Centre has authorized help of greater than Rs 1. 6 lakh crore for 12 states and the Union Territory of Jammu & Kashmir for implementing measures in energy sector. These embody putting in good meters, chopping line losses and erasing hole between price of provide and income realisation, with the goal of restoring monetary viability of discoms (distribution firms).
Sources stated Rs 88,000 crore alone is for good meters, a key ingredient within the Centre’s plan for tackling billing inefficiency and theft — main components for the poor monetary well being of discoms. Tamil Nadu would be the greatest recipient on this rely (Rs 19,235 crore), adopted by Uttar Pradesh (Rs 18,956 crore). About Rs 75,000 crore is for measures to cut back line losses and growing institutional capabilities.

Uttar Pradesh would be the greatest beneficiary when it comes to complete help, pegged at Rs 35,702 crore. Tamil Nadu is subsequent with Rs 28,301 crore, adopted by Rajasthan (Rs 18,627 crore), Madhya Pradesh (Rs 18,172 crore), Gujarat (Rs 16,559 crore), Andhra Pradesh (Rs 13,405 crore) and Kerala (Rs 10,578 crore). The help has been authorized beneath a Rs 3. 3-lakh results-linked distribution reforms scheme authorized in June 2021.
The approaching on board of states dominated by events throughout the political divide — and a few with discoms operating big losses — signifies a consensus and willingness for reforms. It additionally marks a step in direction of ending the vicious cycle of the Centre throwing good cash after unhealthy each few years.
Previously, discoms stored slipping again into dire straits because the monetary packages weren’t linked to adjustments on the bottom. Within the present scheme, launch of help is linked to verifiable outcomes. First, the states should take over the discom losses totally or partially and clear all authorities division dues by 2024-25. Subsequent is modernisation of infrastructure to cut back line losses to 12-15% by 2024-25. Lastly, states should convey the hole between vitality price and income to zero by means of good metering to qualify for the Central help.


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