Will a pan-India discom recharge the power sector?

Will a pan-India discom recharge the power sector?

1) What are NEDC’s objectives?

The aim of the NTPC-PGCIL joint venture is to act as a model discom, thereby improving efficiency and helping resolve the vexed issue of rising non-performing assets in the power sector. Given that electricity is on the concurrent list, NEDC will not only act as a nodal agency for implementing the Union government’s scheme in the distribution sector, but also serve as an implementation agency for state discoms. It will act as the beachhead for introducing distribution sector reforms and help bring new tech, including smart grids, big data and analytics, into fund-starved discoms.

2) Why is it needed?

The need for a pan-India discom was felt given that distribution will be key to the long-term fortunes of the power sector. Discoms have so far been the weakest link in the electricity value chain Read more

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