The Economic Survey of 2025 asked the government to stay out of business and foster investment and growth of the private sector. Meanwhile, a new development is emerging from the PSU side.

As per a report from Reuters, the Indian government is looking to bailout power distribution companies or DISCOMs, that are owned by the government. These public power distribution companies are in deep debt, as per the report.

As according to Power Ministry documents accessed by Reuters, the centre is planning to inject funds into these companies in order to maintain stability amid rising demand, especially with summer months just weeks ago.

Fiscal Discipline

In India, summers usually lead to high temperatures, as a result of which, power demand tends to go up. At a time like this, it would be rudimentary to keep these DISCOMs running.

The report claims that these pubic sector companies have accrued losses worth USD 75 billion (in FY24) or around Rs 64,98,69,37,50,000 or Rs 6 lakh crore, as per current exchange rates.

The power ministry document also reportedly has devised a plan to formulate a group of ministers to identify states that are in exigent need of cash for their operations.

Not just that, the ministry is also looking to design a fiscal discipline program to avoid such situations in the near future.

Privatisation an Option?

The document also suggested that the government, as suggested in the Economic Survey document is exploring the privatisation of the power distribution utilities, for more efficient operations.

Here, the major focus is on DISCOMs owned or run by states, that cannot easily raise the tariffs levied in electricity bills.

The report did not specifically identify any of the companies that could receive this bailout, nor does it talk about centrally-owned entities.

The government is yet to react to this report by the Canadian-British publication.