A remarkable study on the state of electricity distribution companies (discoms) of India shows that instead of improving, the revenues these companies receive from their consumers has declined in a 12-year time frame. As more political parties ratchet up promises to make electricity free in an election-heavy year, this finding has huge implications for government finances.
The study, jointly written by Prabhat Barnwal of Michigan State University and Nicholas Ryan of Yale University, also seems counter-intuitive, since one of the conclusions from the two-decade long power reforms is that the overall dues of these discoms have come down. “The Government