The high price of cheap power

It has been known for a while that electricity distribution companies are the weak link in the country’s power sector. In fact, three utilities alone—those of Punjab, Tamil Nadu and Bihar—owe financial institutions as much as Rs. 61,000 crore. Their net worth stands at a negative Rs. 34,000 crore. This is not merely about losses and balance sheet chaos, it now poses systemic risks.

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