Finshots Daily The DISCOM profit anomaly
Jan 22, 2026
Electricity distribution companies have unexpectedly turned profitable, sparking curiosity about the underlying changes. Discussion reveals a historical backdrop of losses and a government bailout proposal tied to privatization and reform. While collective profits are reported, many DISCOMs still struggle with losses. The podcast delves into systemic issues like delayed payments and strict penalties for noncompliance, suggesting that recent profits are more about policy enforcement than genuine operational efficiency.
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Power Outage While Scrolling Reddit
- The host paints a relatable scene of losing power while scrolling Reddit to highlight electricity's ubiquity.
- This everyday example frames why reliable distribution matters to modern life.
DISCOM Losses Had Become Systemic
- India's DISCOM losses were chronic, with a net loss of ₹67,900 crore in 2014 and ₹25,500 crore two years ago.
- The central government considered a ₹1 lakh crore bailout with tough conditions to curb recurring losses.
Distribution, Not Generation, Drives Problems
- Power availability isn't the issue; distribution, pricing and collection are the weak links causing losses.
- For each kWh generated, distribution requires pricing, collection and accounting which DISCOMs historically mishandled.