The external debts of Indian state-owned electricity distribution companies (discoms) are expected to rise to $37bn by 2020, according to a report by Crisil, The credit ratings agency analysed discoms in 15 states, which made up 85% of the total losses. “Discos have been hit hard because they were not able to raise funds from investors and banks for their capital expenditures,” said Ajay Kumar, chief executive officer at Crisil. The discoms are facing pressure to become more commercially viable as states have limited resources to help them. Nine states have already breached the Fiscal Responsibility and Budget Management Act.
The external debts of Indian state-owned electricity distribution companies (discoms) are expected to rise to $37bn by 2020, according to a report by Crisil, The credit ratings agency analysed discoms in 15 states, which made up 85% of the total losses. The debt had fallen after the government intrduced the Ujwal Discom Assurance Yojana, aimed at stabilising the companies, however it is now expected to rise once again. The discoms are facing pressure to become more commercially viable as states have limited resources to help them. Nine states have already breached the Fiscal Responsibility and Budget Management Act.