EXPLAINER: Why tariff revisions are key to discoms’ revival

Several schemes have been run — and are currently being implemented — to make discoms financially viable and operationally competent. But, these haven’t yielded the desired outcomes. At the core of the issue is high user subsidies and delayed payments to the discoms by the states, creating a chain of payment defaults. Deepa Jainani examines the long-standing issue in the wake of a Tamil Nadu utility’s proposal for 10-35% hike in tariffs, after a decade.