Govt may unveil ₹3 trillion power supply reform
Finance minister Nirmala Sitharaman may announce a ₹3 trillion electricity distribution reform programme in the Union budget to help reduce losses and improve the efficiency of power distribution utilities, a government official said.
The Reforms-Linked, Result-Based Scheme for Distribution—initially referred to as the Atal Distribution System Improvement Yojana—was approved by the Public Investment Board, a government body that examines the proposals, earlier this month.
The scheme is aimed at helping power distribution companies (discoms) trim electricity losses to 12-15% from the present level and gradually narrow the deficit between the cost of electricity and the price at which it is supplied to ‘zero’ by March 2025. The reforms are also aimed at improving the reliability and quality of power supply.
