Discoms need greater autonomy, says Niti Aayog

NEW DELHI: Government think-tank Niti Aayog has recommended that state-owned power distribution companies (discom) require greater operational and financial autonomy if they were to succeed. There should be a clear separation between the utility and state, it added.

The recommendations were made as part of a report titled ‘Turning Around the Power Distribution Sector’, where the think-tank observed that Niti the performance of state-owned discoms is also determined by the ability of the respective State Electricity Regulatory Commissions (SERC) to revise tariff frequently and adequately. “Good corporate governance practices, including the use of independent directors, can help ensure such separation,” it added.