Power discoms to get five more years to turnaround under new scheme

State-owned power distribution companies (discoms), which continue to make financial and operational losses, will get five more years for turnaround under the new ‘Reform linked Distribution Scheme’ to be floated by the Centre. The targets stipulated in 2015 under the UDAY scheme could be extended till 2024-25.

The earlier discom reform scheme UDAY concluded in FY20 with most of the states failing to meet their stipulated targets. The Aggregate Technical & Commercial (AT&C) losses or power supply losses due to inefficient systems were supposed to come down to 15 per cent and average cost-revenue (ACS-ARR) gap of discoms, down to