In a bid to create a broad framework for financial sustainability of the power sector, the government has put in additional measures to improve financial health of Discoms. This also includes streamlining the process of accounting, reporting, billing and payment of subsidy by States to the Distribution Companies.
The measures come in the wake of improper and non-transparent accounting as well as non-payment or delayed payment of subsidy announced by the States, one of the reasons for financial distress of Discoms. The Ministry of Power notified rules on July 26.
