Centre asks Power Grid, NTPC to form JV; help revive state retailers


Centre asks Power Grid, NTPC to form JV; help revive state retailers

The Central government has asked its biggest state power producer and transmission company to form a joint venture that would take over electricity distribution in some areas from financially troubled state retailers, according to people familiar with the plan.

The proposed venture between NTPC and Power Grid Corp. of India would manage challenging distribution areas where the retailers, known as discoms, face power theft and other difficulties, said the people, who asked not to be identified because they’re not authorized to speak to media.

Neither company, nor India’s power ministry, responded to emails and phone calls seeking comment. As part of the plan, the JV would be expected to charge discoms a fee for services that would include seeking power theft prevention, sourcing cheaper power and improving billing and collections. Read More

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