Government proposes new scheme for restructuring power distribution utilities with private participation

The government is working on a new scheme to restructure and reform power distribution utilities that may include a minimum stake disinvestment to a strategic partner as well as debt restructuring, people aware of the development told ET.

As an incentive, the Centre may offer them capital expenditure support, among other forms of backing. Under the scheme, to avail of benefits, state governments will be required to divest at least 20% stake in terms of total electricity consumption to be served by a distribution company that has private sector participation.