Around two decades back, reforms in the power sector were initiated in the country at the instance of World Bank. But in Rajasthan, the reforms have failed to realise their objectives and it is high time to find a sustainable alternative.
That the reforms have failed was further evidenced by the central government's decision to restructure the debt which Rajasthan's power companies are facing. With their total debt burden of around Rs.70,000 crore, they top the list of debt-ridden companies in the country.
However, their debt burden is not reflected in the borrowings of the government as shown in the state budget.
So, the total debt burden of Rs.1,30,000 crore - as shown in the state budget - does not reflect the real fiscal deficit. One wonders why the debt burden of these power companies should not be reflected in the budgetary figures, especially because state stands as guarantor in the rescheduling of debt repayment to the Indian commercial banks.
Read more at: http://indiatoday.intoday.in/story/debt-power-distribution-companies-rajasthan-vasundhara-raje-ashok-gehlot/1/334614.html
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