India has launched its biggest ever power sector audit as electricity distribution companies face huge financial losses of Rs 3.42 lakh crore. The Comptroller and Auditor General of India has started a nationwide review to examine the financial condition and working of electricity distribution companies, also known as discoms.
The first phase of the audit will cover 39 discoms and examine their performance over the last five years. The review will focus on financial losses, outstanding loans, electricity purchases, billing problems and power distribution efficiency. The total outstanding debt of these companies has crossed Rs 7.26 lakh crore. Their yearly interest burden has also reached Rs 77,653 crore, creating serious financial challenges for the power sector.
The audit will also examine renewable energy companies and organisations involved in electricity generation and transmission. For the first time, consumer complaints will also become part of the review. A customer satisfaction survey involving 10,000 people will be conducted to understand electricity consumers problems. This major audit comes ahead of a proposed central government investment of Rs 3 lakh crore in the power sector. The main aim is to identify financial problems, improve efficiency and bring more transparency to electricity distribution. The audit will take place in different phases, with findings expected next year. The reports will later be presented in the respective state legislatures. The findings could help improve the power sector and strengthen electricity services across India.
