December 2012

The Cabinet Committee on Economic Affairs (CCEA) on 24 September 2012 approved a 1.90 lakh crore package on debt restructuring for the state-electricity boards. The taken step will allow the state- distribution companies (DISCOMS) to facilitate their turnaround. The committee met under the leadership of Prime Minister Manmohan Singh and gave its nod to the package forcing the red marked distribution companies to start the fresh round of tariff increase. The note of the cabinet states that all this has been done to maintain a balance in between the average cost of supply to that of the average of the revenue released. To avail the package the discoms and the state government will have to keep revising the tariffs on a regular basis.

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