Thursday, November 19, 2015

Power sector reforms

Power sector reforms - is this time different?

The markets have been largely appreciative of the latest round of power distribution companies debt restructuring. In this context, I am tempted to repost what I had written in the context of the 2012 debt restructuring. In particular, this graphic of the cumulative discom losses as a share of nominal GDP is very instructive - we are today at the same stage in terms of cumulative losses as in 2002.
So is this time any different? Atleast some do not think so.