CAG to audit power discoms over mounting financial stress
· Business · LiveMint, Indian Express
The Comptroller and Auditor General (CAG) has launched a nationwide performance audit of power distribution companies (Discoms) facing mounting financial stress, high debt and operational inefficiencies, targeting operational and financial performance including power procurement, demand forecasting, metering, regulatory accounting and consumer services, as part of a four-year exercise to assess the health of India's power sector, with 24 Discoms having negative net worth and accumulated losses of ₹3.42 trillion as of 31 March 2025, while revenue grants to Discoms increased 69.4% to ₹94,095 crore between FY21 and FY25, compared with a 16% rise in capital grants to ₹1.25 trillion, and national-level AT&C losses stood at 15.04% in FY25, marginally above the 12-15% target
Why it matters
The audit will determine whether government support to Discoms is driving structural improvements or merely covering accumulated losses and debt, directly affecting the financial health of India's power sector and consumer services
Read the original report — LiveMint
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