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States need to fund loss making discoms: FM

By Religare

The Indian Government has said that it has worked out a plan that will be discussed with the State Governments to finance their loss-making electricity boards, media reported.

Commenting on the issue, Finance Minister Arun Jaitley told the media, "There was a meeting last week. The plan has been brought out by the power ministry. The power ministry is going to speak to the defaulting state electricity boards and the governments of those states with regard to the plan that has been made."


"The states will have to finance them. After we have negotiated that with the plans, then we will go ahead," he added.

As per reports, expressing concern over the financial health of some state-owned power distribution companies (discoms), the Finance Minister also said that some states were not levying adequate electricity tariff.

His comments come against the backdrop of many discoms facing financial stress that has also resulted in rising non-performing assets in the banking sector.

Story first published: Tuesday, September 22, 2015, 12:20 [IST]
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