With reference to the report, "Debt recast for power discoms: Centre likely to put the ball in states' court" (October 5), the proposed financial restructuring plan to address the issues relating to the large debts of power distribution companies is a radical one and needs to be implemented soon. Simultaneously, the Union and state governments should enforce tough measures to prevent power theft and leakages and thus improve the efficiency of these discoms.
At a time when the banking industry is weighed down by growing stressed assets, the government should try to repay the defaulted principal and interest amounts due from power companies. This will provide significant relief to the banks. Instead of restructuring the defaulted loan amounts, banks should insist on the recovery of dues. State governments should take advantage of the proposed reduction of the Fiscal Responsibility and Budget Management limit and initiate steps to repay the defaulted amount owed by these firms.
V S K Pillai Kottayam
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