Ensuring the financial viability of the state-run electricity distribution companies (discoms) and management of the increasing quantum of renewable electricity will be the biggest challenges before the country, said Sanjay Banga, chairman of Tata Power’s distribution and transmission utility. He insisted that involvement of the private sector in the discom business is the best way to help sustain the utilities that are expected to provide cheaper and reliable power.  

Banga said on Monday, at the company’s Trombay facility, that the state-run discoms have not been able to pay the generation companies (due to many reasons including billing issues and government subsidy dues). This has been happening in a country which is (power) generation surplus. Generation companies (gencos) face acute problems when they are not paid for the electricity they sell to the discoms, he added.