Government may delicense power distribution sector to allow competition

New Delhi: The government proposes to delicense the power distribution sector allowing competition in the supply of last mile electricity connectivity to consumers.

Official sources said that the Power Ministry would soon move a draft bill proposing amendments in the Electricity Act that would remove the wording ‘distribution licensee’. What this will do is to maintain status quo of existing distribution entities but will now allow entry of other participants in a distribution area if it is able to manage infrastructure for supplying electricity to consumers.