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Govt preps debt recast plan for discoms
Mint Bangalore
|October 30, 2025
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This proposal aims to push states to allow private participation in the state and enhance financial viability of the discoms.
The Centre is preparing a new scheme to recast the massive debt of state-owned power distribution companies (discoms) and open them up to private participation, said two people in the know of the development. This could mark the most sweeping reform in two decades for India’s loss-making utilities.
“Under the scheme, management control would be transferred to the strategic partner from the private sector and the debt of the discom would be taken over the Centre in a bid to make the transaction attractive for the partner,” said one of the two people mentioned above.
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