New Delhi, Nov. 12 -- The national auditor, the Comptroller and Auditor General of India (CAG), has launched a nationwide performance audit of power distribution companies (Discoms), which face mounting financial stress, high debt and persistent operational inefficiencies, as part of a four-year exercise to assess the health of India's power sector, according to two government officials.

The audit will initially focus on the operational and financial performance, with particular attention to power procurement, demand forecasting, metering, regulatory accounting and consumer services.

The broader exercise will cover all major segments of the power sector, including generation, transmission, distribution and renewable energy, over the nex...