Union Budget 2021 | Power Grid InvIT to get power transmission assets of Rs 7,000 crore

Union Finance Minister Nirmala Sitharaman, while reading out the Union Budget 2021-22 on February 1, announced that power transmission assets of Rs 7,000 crore would be transferred to Power Grid Infrastructure Investment Trust (InvIT).

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The finance minister stated that the Centre would also provide Rs 2 lakh crore to states and autonomous bodies for Capex. "We will nudge states for more capital expenditure," she said.

The Union Minister also, as part of the Budget, announced a Rs 3.05 trillion electricity distribution reform programme to help reduce losses and improve efficiency of electricity distribution companies (discoms).

Sitharaman stated that the current session of the Parliament will consider the Electricity (Amendment) Bill, 2021, which has proposed amendments including measures such as “de-licensing" of the power distribution business to bring in competition. Among other things, she said the Budget proposes to put in place a framework allowing a choice of electricity supplier to consumers.

Among other things, FM Sitharaman also stated that the Ujjwala scheme would be expanded to over one crore more beneficiaries. She added that the scheme would add 100 more districts to the city gas distribution network. Also, she also proposed an allocation of Rs 1,000 crore to Solar Energy Corporation of India.