ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Atmanirbhar BharatSubscribe to Atmanirbhar Bharat

COVID-19 Economic Stimulus and State-level Performance of Power Distribution Companies

As part of the COVID-19 economic stimulus package, the Government of India increased the borrowing limit of the states from 3% to 5% of the gross state domestic product. The power sector reform at the state level is one of the criteria to avail this extra borrowing. The efficiency parameters of the power sector are analysed here, and it is observed that there are statewise differentials in the financial and operational parameters. The average aggregate technical and commercial losses that should have been 15% by 2018–19, presently, on average, stand at 26.15%. The average cost of supply–average revenue realised has also widened. The operational parameters indicate widening inefficiencies across states in the power infrastructure.

Marginalising the Marginal: Supply-side Approach in the 2021–22 Budget Will Not Work

The union budget is the biggest single event of the economy in any given year. No other economic event can match it in terms of its impact, except when there are shocks such as a drought or a demonetisation or a pandemic induced lockdown. Those who argue for downsizing the government argue that the budget does not matter since it cannot make much of a difference to the economy. But even they spend considerable time analysing the union budget. Why is that so?
Back to Top