Reforms Based and Results Linked Scheme: DISCOMs

Syllabus: General studies paper 3 Context: State-owned distribution utilities (discoms) continue to be in fragile financial health. In its budget 2021-22, the Union government had announced the launch of a “reforms-based and results-linked” scheme for the distribution sector with the objective of improving the financial health and operational efficiency of discoms. The meaning of DISCOM is “Distribution Company (In India)”. These companies are not generating electricity themselves, rather purchasing it from someone else and just supplying it to the final consumers. Challenges for discoms Their precarious financial position is due to the high level of aggregate technical and commercial (AT&C) losses, the levy of inadequate tariffs when....Read More