Indian Discoms: Challenges and Suggestions

Challenges

  • High AT&C Losses: The perilous financial situation of DISCOMs is a result of the high level of aggregate technical and commercial (AT&C) losses, the imposition of insufficient or lower prices when compared to the cost of providing electricity, and the lack of significant subsidy support from state governments.
  • Poor Financial Standing: To provide the cash flows required for the operation of the generating and transmission sectors, power distribution businesses collect payments from users against their energy supplies (bought from generators). Discoms are unable to pay the generators in a timely manner for the energy they acquire from them because ....
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