Power minister RK Singh on Monday called for immediate correction of wrong policies like continuing state subsidies for large sections of electricity consumers and billing-and-collection inefficiencies which keep state distribution companies (discoms) in poor financial health.
Stressing the need for robust and sustainable revenue stream for discoms which have been given many bailout packages, the minister noted that half-hearted reforms under Electricity Act 2003 was also to blame for the current state of affairs. Distribution companies are still to be entirely removed from the clutches of the state governments, so they are not able to take commercial decisions in a free manner.
