New Delhi: With the power sector caught in financial distress over burgeoning discom losses- made worse due to COVID 19- a single financial package may not be enough.
Deeper sectoral reform and relook may be in order—an issue that has now been red flagged by the Power ministry to the 15th Finance Commission as it readies its final report.
A key request made to the Finance Commission is seeking relaxation for states in the borrowing limits under the Fiscal Responsibility and Budgetary Management (FRBM) Act and expand borrowing space for states especially for power dues related concerns.
The power ministry is learnt to have written to the 15th Finance Commission drawing attention to the exceedingly worrying situation of discoms and has made several suggestion for a reboot, so that these may be accomodated in the final FC report.
