Power distribution companies in UTs to be privatised, says Finance Minister

Finance Minister Nirmala Sitharaman on Saturday mentioned electric power distribution firms in Union Territories (UTs) will be privatised.

This is envisioned to supply a product to be replicated in states later to enhance efficiency and entice financial investment. Unveiling the fourth tranche of the Rs twenty lakh crore stimulus offer to revive the coronavirus-strike financial system, Sitharaman mentioned there is sub-optimum overall performance of electric power distribution and source in the nation.

She mentioned privatisation of discoms will direct to much better support to customers and advancement in operational and economical efficiency in electric power distribution. This would provide as a product for emulation by other utilities across the nation, she added.

Privatisation of distribution firms (discoms) has been below consideration of the electric power ministry for rather some time. Earlier, discoms in Mumbai, Delhi and some other towns experienced been privatised.

Meanwhile, Electric power Minister R K Singh experienced on Friday questioned business reps to take part in the bidding process for discoms.

The minister also mentioned a revised electric power tariff policy will be unveiled in the coming times which would focus on buyer legal rights, marketing of business and sustainability of the electric power sector.

Below the revised policy, the discoms will not be authorized to pass on their inefficiencies and losses to customers.

Discoms will also have to manage particular support standards and would be penalised for load shedding, besides in scenarios of purely natural calamities or technological failures.

The era and transmission task builders would be selected through competitive bidding. It will also supply for immediate advantage transfer of subsidies and set up of smart meters. Singh experienced advised business reps in a webinar that an casual group of ministers experienced authorised the revised tariff policy which would be taken to the Union Cabinet for acceptance. He expressed hope that the policy would be rolled out in just a thirty day period.