National discoms signals depleting dependence on state-owned entities


National discoms signals depleting dependence on state-owned entities

The power sector is waiting to see if National Electricity Distribution Company (NEDCL) — the joint venture between NTPC and Power Grid Corporation (PGCIL) to foray into the electricity distribution business on a pan-India basis — can address real challenges of the business segment which is touted as the weakest link in the power supply chain.

Experts point out that since states have more say in power policies than the Centre, it remains to be seen how they treat this Central government-owned entity.

“The move signals that the central government is acknowledging that state-run discoms are turning non-viable by the day,” said Sanjay Kumar Banga, CEO, Tata Power Delhi Distribution (TPDDL), which distributes electricity in north and north-west Delhi.

However, Banga said, “Neither of the two companies has any significant experience in power distribution and it would have made more sense if they joined hands with private firms which have worked on-ground.” Read More

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