On Monday, the Delhi government virtually bailed out the Capital’s power utility BSES, which had run into difficulties due to its inability to pay dues to power generation and transmission firms amounting to Rs 3,000 crore.
A PTI report said the government had agreed to infuse Rs 500 crore as equity into the troubled firm. Clearly, the state government had concerns about smooth supply of electricity.
These concerns should have been displayed much earlier (the state government has a 49% stake in BSES) and should in no case have translated into what is effectively a bailout. If a private power firm has mismanaged its finances, that clearly is its problem. True, it would have inconvenienced residents of Delhi, but that is another matter. If inadequate tariffs were an issue, then that ought to have been settled between Delhi’s voters and its political leaders. The primary issue is the propriety of the bailout.