Rising discom debt

The sector needs urgent policy reforms

It is now a given that India’s economic recovery would be a slow process as the country battles the Covid-19 pandemic. While this will hurt most economic agents, things would be particularly difficult for firms that were in a weak position even before the pandemic. One such sector that will need policy attention is power distribution companies, or discoms. Apart from the Covid-induced difficulties, discoms have been a victim of the inability of the political leadership to make the right policy choices. The government recently announced a Rs 90,000-crore liquidity support programme for discoms. Although this will help discoms clear