economy
What are the proposed power reforms in a nutshell?
Jul 30, 05:07

Distribution networks (discoms) are the weakest link in India's electricity value chain. They face financial crunch, grapple with operational inefficiencies and are saddled with unsustainable tariff structures, high aggregate technical & commercial losses. As viability of discoms is a concern, FM Nirmala Sitharaman in her Budget speech announced a Rs 3.05-lakh-crore electricity distribution reform programme, providing them financial assistance to create infrastructure. Last year, power ministry had issued the Draft Electricity Bill, 2020, which proposes privatisation of distribution companies in Union Territories via sub-licensing and franchisee models to lower losses of both electricity and finances.

Reform Schemes for Discoms