Financial bailout of Power Sector is no solution
India’s power sector is poised for a dramatic change and but can the government wipe out state distribution companies’ losses by 2019 is a million dolor question. The future of NDA government is directly linked with the reforms in the ailing power sector of the country .
The Government has now proposed another financial bailout package for state owned power distribution companies (Discoms ). Centre proposes to convert 75% of loans to Discoms into government bonds and reduce the interest on the remaining 25 % loan to bailout 8 Discoms.