Attracted by proposed power sector reforms and India’s potential, Italy’s Enel Group is exploring the possibility of entering India’s electricity distribution business, two people familiar with the development said.
The interest from the European utility in India’s electricity distribution sector comes against the backdrop of the government’s measures including the proposed separation of the wire and electricity supply business.
“Distribution has been a chaotic space given the losses borne by the state electricity distribution companies (discoms). However, we have been seeing interest from international majors of the likes of Enel trying to enter the Indian distribution and retail supply space,” said one of the two people cited above, requesting anonymity.
To tide over the debts of around Rs4.3 trillion, the Indian government launched the Ujwal Discom Assurance Yojana (UDAY) in November 2015 to improve operational and bill collection efficiency of power discoms. Also, the government plans to leverage the recently launched Rs16,320 crore Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) for universal electricity access. Read More…
Latest posts by Livemint (see all)
- Indian Oil Q4 profit rises 40% to Rs5,218 crore - May 23, 2018
- Suzlon in talks to sell 300 MW of wind power assets - May 23, 2018
- JNPT Looks To Buy Out Smaller Cash-strapped Ports To Ramp Up Capacity - May 23, 2018