‘Discom loss surge to Rs 90,000 cr in FY21’

Losses of state-run energy distribution firms (discoms) are estimated to have surged to Rs 90,000 crore in FY21, a report launched by NITI Aayog on Tuesday.
Union Power Minister RK Singh lately stated discoms’ losses had been down 38 per cent on-year at Rs 38,000 crore in FY20, primarily resulting from corrective actions like well timed tariff revisions and enchancment in billing and assortment effectivity. The losses had been anticipated to have risen once more in 2020-21, owing to the pandemic disrupting the reform course of that induced a sure self-discipline amongst these entities.
The report, co-authored by NITI Aayog and vitality suppose tank RMI, really useful a number of measures, together with offering higher autonomy to discoms, well timed tariff revisions, rising competitors within the enterprise and bigger involvement of the personal sector to enhance the well being of those perennially-distressed entities.

“A robust and long-lasting solution to the woes of the discoms requires changes in policy as well as organisational, managerial, and technological reforms,” stated Clay Stranger, managing director, RMI.
Experts have pointed that income of discoms could have considerably dropped in FY21 with demand from high-paying industrial and business shopper segments getting disrupted amid the lockdowns to include the coronavirus. FE