Q.3 What are the factors responsible for the deterioration of the financial position of the state-owned power distribution companies? Is bailout by the government a solution? (10 Marks)

Mentor’s comment-
  • In the intro, mention the  increasing debt burden of the state-owned discoms.
  • In the body mention the factors responsible such as high losses, increased tariff due to cross subsidies, delay in clearance of dues by the state governments, inefficiencies etc. In the next part, mention the issues with the previous attempts at bailing out the ailing discoms and failures in it.
  • Conclude by mentioning the need for reforms in the sector affecting the economy as whole.
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believing is seeing
believing is seeing
9 days ago