Rs. 850 bn subsidy dependence for discoms

Rating agency ICRA has estimated a subsidy dependence of Rs 850 bn amid low tariff hikes allowed for discoms in 2018-19 and expects improvement in thermal plants capacity utilisation in the near to medium term. <br /> <br /> The domestic electricity demand growth is likely to remain at about 5-6 per cent in near to medium term, supported by thrust towards rural electrification, the expected recovery in industrial or commercial segment, along with some improvement in the paying capacity of the state-owned distribution utilities.<br />