The Planning Commission has set up a Committee headed by its Member B K Chaturvedi to improve the financial health of power distribution companies in the country which is reeling under huge losses.

The Committee also includes representatives from the Union Finance Ministry, the Reserve Bank of India and officials from the state governments.

Talking to newsmen in New Delhi today, Mr. Chaturvedi said that the committee will prepare a report in the next 6 months, before the start of the 12th Five Year Plan Period 2012-17, so that the suggestions can be incorporated in it.

AIR Correspondent reports, the Finance Minister Pranab Mukherjee, at the National Development Council meeting last week, had asked the states to raise electricity charges to improve the financial health of power distribution companies.

They are facing difficulty in raising fund from banks on account of poor balance sheets. Some of the distribution firms have not raised tariffs for 10 years and their total losses are estimated to be 70,000 crore rupees.