Power subsidies and weak discom governance continue to strain state finances and fuel off-Budget borrowing
The Finance Commission suggests warehousing discom debt to ease balance sheets and enable privatisation
Debt relief would be linked to privatisation, though public-sector reform has worked in states like Gujarat
Recent profits reflect policy support and administrative fixes, not lasting structural change
Power subsidies have doubled since 2018-19, with losses shifting to state Budgets and future taxpayers
With risks to fiscal sustainability rising, the Commission’s recommendation deserves serious scrutiny