Scindia to release discom ratings tomorrow

A rating system was adopted to assess the overall performance of power distribution companies in view of the concerns over rising their losses

 

Power Minister Jyotiraditya Scindia will meet the energy secretaries from various states and also release the integrated ratings of electricity distribution companies tomorrow.

He will declare the ratings and also release a book on the ratings. The meeting will be attended by State Energy Secretaries, CEOs of banks, state distribution companies and senior officials from Power and Finance Ministries, among others.

"The Minister is also likely to discuss and bring the states on board for the Financial Restructuring Package," sources said.

Last year, the government approved restructuring of Rs 1.9 lakh crore debt of State Electricity Boards in a move to turnaround the power distribution companies that are under financial stress.

Taking over of 50% short term liabilities of discoms by respective state governments is a major proposal in the Central government plan.

Incentives such as re-imbursement of 25% of discom debt taken over by the state government are part of the scheme.

Only a handful of states have come forward for the restructuring plan, with some having their set of reservations.

"The meeting would hopefully bring more states on board for the debt restructuring plan," sources added.

In view of the rising concerns over losses of power distribution companies, a rating system to assess their overall performance was suggested.

The system would look into various aspects related to utilities, including tariff hikes and steps taken to reduce transmission losses.