Over twelve months after Union Power Minister R K Singh asked the Central Electricity Authority (CEA) to develop norms regarding “establishment costs” of power distribution companies (discoms), the CEA — the apex policy advisory body in the electricity sector that works under the Ministry — is yet to come up with the norms.
The minister had given the CEA a week’s time to come up with these norms — which include office cost, metering cost and employee cost and is significant as establishment cost currently varies across the states due to factors such as vintage infrastructure, scattered population and difficult terrain.
During a conference of state power ministers on December 7, 2017, a senior official of Ministry of Power stated that the average establishment cost of states, which are participating in the UDAY scheme, was Rs 0.67 per unit Read More
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