Government-run power distributors in India continue to hold the sector “hostage” as there has been little improvement in their operations despite multiple attempts over the years, Vinayak Chatterjee, chairman of Feedback Infra told BloombergQuint in an interview.
The government has launched the Saubhagya scheme with a projected outlay of `160 billion and with an objective of providing household electrification, especially in rural areas.
Pradhan Mantri Sahaj Bijli Har Ghar Yojana –“Saubhagya” a new scheme was launched by the Prime Minister Narendra Modi to ensure electrification of all willing households in the country in rural as well as urban areas on 25th September, 2017.
The government’s recent notification of bidding guidelines for the award of solar power projects comes as a positive development for the sector, credit ratings agency ICRA has said.
Attempts by India’s state-owned power distributors to renegotiate power-purchase agreements (PPAs) for renewables could delay wind and solar projects, leaving the door open for gas-fired developments.
After the Delhi electricity regulator failed to hike energy charges for the third year in sucession, distribution companies (discoms) in the national capital on Friday strongly pitched for tariff revision, saying most other Indian states have raised power rates in the last few years.
As more states take the route of revision of tariffs for renewable energy projects as recent bids have gone ultra low, the sector could see a major shakeup with close to 7 GW under pressure.
Determined to curb power theft that is financially bleeding its power distribution companies (discoms), the BJP-ruled Uttar Pradesh has decided to invoke stringent laws like the National Security Act and Goonda Act to deal with electricity thieves.
In a turnaround of financials of state discoms, like those of Maharashtra, Rajasthan and Madhya Pradesh, following government initiatives in the last one year
India plans to introduce smart meters on a large scale to help discoms check power theft and reduce their commercial losses, which have eroded viability of the state power sector.