Despite the various support measures by the government, DISCOMs continue to suffer from several woes. Analyse the reasons for DISCOM’s financial woes and suggest measures to deal with the problems. 10 marks

Mentor’s comment-
  • https://www.financialexpress.com/opinion/discom-loan-package-a-boon-for-power-sector/2026595/
  • In the intro, mention the inability of Discoms to meet the UDAY objectives on time.
  • In the body, mention high AT&C losses, delays in tariff revision, diversion of funds meant for capital expenditure to service debt, higher tariff PPAs etc. Measures could be the privatisation of discoms, pre-paid metering, separation of agri-feeders, measuring agri-consumption etc.
  • Conclude by mentioning the importance of solving the woes of the discoms to make the power sector efficient.

 

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