Distribution Companies Should Turn the Tide by Going SMART

Key Messages

State-owned electricity distribution companies (DISCOMs) continue to be plagued with financial problems. This is so despite efforts by both central and state governments to bail out the beleaguered DISCOMs with rescue packages. In a last-ditch effort, the Central Government announced INR 3.05 lakh crore in the Union Budget 2021–22 to redeem the utilities. This could very well turn out to be the last opportunity for DISCOMs to turn self-sustainable, given that the Central Government has already initiated privatisation of power distribution companies in union territories (UTs) such as Chandigarh, Daman and Diu, and Dadar and Nagar Haveli.