M L Khattar urges power firms, including discoms, to list, but they struggle under Rs 6.84 trillion debt and Rs 6.46 trillion losses amid a financial crisis
In FY24, high power demand and costly imported coal worsened discoms' losses, impacting 16 states, including Uttar Pradesh and Maharashtra
The RDSS bailout fell short as discoms failed to invest in upgrades, missing targets for budgetary grants
Discoms' financial troubles persist as FY25 tariff hikes were modest at 1.7 per cent, below last year's 2.5 per cent, forcing states to rely on cross-subsidies
States exceed the 20 per cent cross-subsidy cap, raising business costs to subsidise sensitive groups, distorting the market
Market-driven pricing is needed to unlock sector potential and integrate renewables. Without reforms, inefficiencies will continue to hinder growth