The financial health of Discoms continue to shadow India’s power sector. While measures such as payment security and Letters of Credit serve as short-term remedies, improving Discom health is the only solution to this problem. Prime Minister’s recently launched Revamped Distribution Sector Scheme (RDSS) is expected to provide financial incentives linked to meeting certain targets, such as smart meter rollout. It is expected that it will help Discoms to improve operational efficiencies and reduce their losses; making them financially self-sustainable. In addition, privatisation of discoms to bring in efficiency in operations and best technology can be the important turn around step in improving financial health of the discoms, benefitting the sector at large.