Summary
With weak power demand and high cash losses amid the Covid-19 pandemic, power distribution companies (discoms) will end up owing lenders a staggering Rs 4.5 lakh crore by the end of 2020-21, according to research and ratings agency CRISIL.
"Such a material increase in debt would deteriorate the credit profiles of discoms and make structural reforms critical to their sustainability," CRISIL said adding that the registered losses in 2020-21 will be 30 per cent more than last fiscal year.
The agency has done a study of 34 state discoms from 15 states, which account for over 80 per cent of India’s power demand. "Today only one in five di......