A massive rise in the financial losses suffered by power utilities run by Indian state governments is projected, if the states do not reform the companies and the markets they serve. Planners warn that if the utilities' distribution and supply losses are not staunched, investments in generation and transmission will also be severely hit.rnState utility losses are estimated at Rupee 400 billion ($8.8 billion) for the fiscal year ending March 31, 2010, having risen progressively from Rupee 183.75 billion in fiscal 2005/06. Many states are defaulting on promises to extend financial help to the utilities to cover the losses they incur by supplying power at well below cost to some consumer groups, especially farmers.
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