Abstract
Subject Problem of endemic debt in India's power sector. Significance The government plans to impose a new statutory instrument to staunch fast-growing financial losses in the power sector. The Atal Distribution System Improvement Yojana (ADITYA) would force electricity distribution companies (DISCOMS) to raise their revenue collection to economic levels. Impacts As DISCOMS struggle to fund a 24-hour electricity supply, most consumers will continue to experience regular power cuts. Tightening regulation from the central bank on bad loans will expose the extent of power sector indebtedness. The central government will step up investment in electricity transmission and distribution infrastructure.
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