The Centre on Saturday asked states to raise electricity charges to improve the financial health of power distribution companies, which are facing difficulty in raising fund from banks on account of poor balance sheet.
“The operational efficiency of the distribution utilities has to be improved. The states will have to review and revise the tariffs regularly to ensure the financial health of these utilities,†the Finance Minister Mr Pranab Mukherjee said at the National Development Council (NDC) meeting.
Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia too has warned that source of funding to the sector will soon dry up.
On the recent problems in power generation, Mr Mukherjee said the sector is facing shortage of coal and natural gas.
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