Centre has decided on a set of measures to bring down the losses of power distribution utilities.They include conversion of a company's loans into equity to pump in more capital to boost its worth and allow better execution of its operations.An official statement issued last evening said that the state governments will consider converting loans due from the state governments to the distribution utilities as state government equity to ensure capital infusion and improvement in net worth of utility . In an unanimously adopted resolution at the end of Power Ministers confrence, the Union Power Ministry agreed upon a set of measures to bring down the distribution losses.The resolution said that state governments should also ensure that distribution utilities file their Annual Tariff Revision Petition every year, by December-January of the preceding financial year to the State Regulators as stipulated by the National Tariff policy.
News On AIR | July 14, 2011 9:20 AM
Center decides measures to bring down losses of power discoms