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 effi ciency parameters of the power sector are analysed here, and it is observed that there are statewise differentials in the fi nancial 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 ineffi ciencies across states in the power infrastructure. © 2021 Economic and Political Weekly. All rights reserved.