Best practices for other SEBs: Under the leadership of Narendra Modi, Gujarat has seen an impressive turnaround in the power sector—its distribution arm has an eight-year-long profitable track record and supplies 24x7 power. Losses were cut via the landmark ‘Jyotigram’ feeder separation, which could apply to three (MP, UP, Rajasthan) of the five troubled SEBs. Power being a concurrent subject, it would be interesting to monitor the pace and speed at which the Centre is able to incentivise the adoption of best practices by the states. This could remove the biggest bane of the Indian power sector—financial viability for SEBs—and significantly reduce working capital pressure for banks and IPPs (independent power producers).
Read More : http://www.financialexpress.com/news/gujarat-lessons-effect-buy-powergrid-jpvl-tata-power-hold-adani-power-shares/1265257
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