Last week, a news report suggested that Madhya Pradesh DISCOMs have accumulated losses of INR 250 billion (USD 3.5 billion). The DISCOMs have requested the state regulator to allow increase in grid tariffs for recovery of losses. It is feared that average power tariff may have to rise by INR 2.00/ kWh or more as a result. The situation is similarly grim in Tamil Nadu, where aggregate DISCOM losses have touched INR 1 trillion (USD 14 billion) because tariffs have stayed flat for five years. The state government is not even allowing the DISCOM to present a tariff increase petition to the regulator.
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