Finally, the power ministry has set up a committee of distressed state-owned discoms and lenders like PFC and REC to work together on reducing the losses of eight discoms.
Finally, the power ministry has set up a committee of distressed state-owned discoms and lenders like PFC and REC to work together on reducing the losses of eight discoms. The discoms have piled up a debt of nearly R2 lakh crore, which is on the verge of turning bad. Power minister Piyush Goyal has often criticised the financial restructuring plan (FRP) offered to some worst performing discoms in 2012, but has refrained from tweaking or scrapping the scheme. The decision to form a panel to focus on such states may have happened one-year too late, but stakeholders believe it could bring about some urgency in cleaning up the mess.
Sunrise in public sector
It appears Japan has emerged as the first, or even last, resort of the government. Wherever there is a shortfall, especially in infrastructure development, the Japanese are there to help, be it industrial corridor, bullet train, solar projects or smart cities. The government is now wooing the Japanese to join the disinvestment programme. A department of disinvestment official recently met institutional investors in Japan to market the PSU stocks. Of course, the disinvestment target of R69,500 crore for the year is daunting. But the Japanese will bankroll this too, it seems.