Column : Been there, done what?
Unfortunately, despite a decade of reform, discoms are once again in financial distress on account of comparable reasons, and a bailout with similar terms (which are now legally binding) is being proposed. This article argues that the current crisis is a result of the failure of discoms, state electricity regulatory commissions (SERC), central and state governments and, importantly, banks also to ensure implementation of existing legal provisions. While the current bailout may be unavoidable, it does not address the issue of institutional accountability, which is at the root of this crisis. Let us first quickly understand how we (once again) landed in the current situation.
Why discoms are in a soup
The examination of accumulated losses and short-term liabilities shows that a high level of AT&C
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