According to analysis by CRISIL, aggregate external debt of State-owned Discoms is set to increase to pre-Ujwal Discom Assurance Yojana (UDAY) levels.
Recent report:
CRISIL analysed State-owned electricity distribution companies (Discoms) in 15 States, which account for 85% of the aggregate losses.
According to it, aggregate external debt of these diiscoms is set to increase to pre-Ujwal Discom Assurance Yojana (UDAY) levels of ₹2.6 lakh crore by the end of this fiscal.
With most States having limited fiscal headroom, continuous financial support to their discoms may be difficult. So discoms have to become commercially viable through prudent tariff hikes and a material reduction in aggregate technical and commercial (AT&C) losses.
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