Budget 2021: ‘Higher allocation needed for power distribution infrastructure’

NEW DELHI: The Centre needs to come up with higher budgetary allocation for power distribution infrastructure in the upcoming Union Budget, sector stakeholders and experts said.
ICRA has recommended higher budgetary allocation to strengthen the power distribution infrastructure and improve the financial viability of the distribution segment, including the implementation of amendments to the Electricity Act.
The government should take measures to augment fund availability and ease land acquisition challenges with a view to achieve the renewable capacity targets, it said.
Further, the ratings agency has also suggested support measures to promote investments in the roof-top solar segment.
Sector experts have also sought long-term policy measures to promote domestic module manufacturing.
Recommendations have also been made to promote investments in transmission infrastructure for harnessing power from renewable projects.