The Financial Vulnerability of States Offering Large Power Subsidies”

There is an ongoing debate around power subsidy reform. Subsidies to the power sector continue to grow every fiscal year, even though they adversely affect the balance sheets of power distribution companies (DISCOMs), which are compensated by state governments, and draw resources away from revenue-yielding activities in state budgets. Pahle India Foundation intends to examine the link between power sector subsidies and the financial health of states that offer them using various indicators such as outstanding liabilities, public debt and gross fiscal deficit.