Power distribution companies (discoms) in Union Territories will be privatised, Finance Minister Nirmala Sitharaman said on May 16.
She made the announcement as part of tranche four of the Rs 20 lakh crore stimulus package, adding that the move will address the sub-optimal performance of power discoms.
“This will lead to better service to consumers and improvement in operational and financial efficiency in distribution. It will also provide a model for emulation by other utilities across the country,” the finance minister said.
For this, a tariff policy reform will be undertaken, addressing three main areas: consumer rights, promote industry and sector sustainability.
Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
The reforms will include the following:- Consumer rights
- Smart prepaid meters
The finance minister announced the fourth tranche of announcements aimed at creating structural reforms in coal, minerals, defence production, airspace management, airports, Maintenance, Repair and Overhaul (MRO) in aviation, power distribution companies in UTs, space and atomic energy.