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Essay text:
State government fiscal burden on account of
the power sector has eased by some measures, although it continues to be high. The
turnaround has broadly coincided with the introduction of financial and structural
initiatives comprising debt rescheduling, incentive/penalty based schemes, and proreform
legislation.
Within the general improvement (by some measures), we find that there is significant
dissimilarity between states and utilities in performance and related top-level factors that
influence outcomes. The paper deploys data on various parameters of utilities’ operations
– average revenue realisation, collection efficiency, composition of demand, tariff
changes, power units input, cost of supply, physical losses and others – to get an
indicative validation of the reform initiatives...
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