In what may be a game-changer for the country’s ailing electricity distribution sector, the two state-run power giants — NTPC and PowerGrid Corporation of India Limited (PGCIL) — have signed an agreement to set up a joint venture discom: National Electricity Distribution Company Limited (NEDCL).
NEDCL, a 50:50 joint venture, will focus on managing challenging distribution areas where the retailers, also known as discoms, face power theft and other difficulties. “The main aim is to undertake the business for distribution of electricity in distribution circles of India and related activities,” PGCIL said in a statement.
That apart, the recent move paves the way for the two central public sector entities to enter the power supply business, which until now has largely been the territory of state discoms. Read More