Discoms suffering severe financial stress: Ind-Ra
Kolkata: A study by India Ratings & Research on the financial health of 29 power distribution companies indicate that even though book losses of discoms have declined on an overall basis in FY18 compared with FY17, the sector has been suffering from severe financial stress.
“Financial profiles of discoms have been adversely impacted due to lower-than-expected decline in AT&C losses and widening of ACS-ARR gap, as the increase in power purchase costs on one end of the spectrum have not been consistently matched by the cost reflective tariff hikes on the other end,” the study mentioned.
