Government will revive state discoms, says Jayant Sinha
Jayant Sinha, the minister of state for finance, has said the government is committed to revive the sick power distribution companies (discoms) run by state governments, even as the Reserve Bank of India (RBI) estimates that banks are staring at a loss of Rs 53,000 crore because of the discoms.
“We’re familiar with the issues of the distribution companies,” said Sinha. “Because we’ve made a commitment to the people of India that we’ll provide 24×7 power, I think it is incumbent upon us to find solutions to these issues in the power and distribution sector,” Sinha said at a seminar on ‘Alternative Financing Structure’ organised by Edelweiss Securities and Wells Fargo.
But Sinha did not provide details on how the government plans to do the bail out. Bankers say discoms of Haryana, Tamil Nadu, Uttar Pradesh, and Rajasthan are under financial stress.