The government will enable electricity connections portability to consumers by introducing competition in the power distribution space and kickstart a Rs 3 lakh crore reforms scheme for state power distribution companies, finance minister Nirmala Sitharaman announced on Monday.
“The distribution companies across the country are monopolies, either government or private. There is a need to provide choice to the consumers by promoting competition. A framework will be put in place to give consumers alternatives to choose from among more than one distribution company,” Sitharaman also announced a distribution reforms scheme for the next five years. “The viability of distribution companies is a serious concern. A revamped, reform-based, results-linked, power distribution sector scheme will be launched with an outlay of Rs 3,05,982 crore over five years. The scheme will provide assistance to discoms for infrastructure creation, inclusion of prepaid smart metering, feeder separation, upgradation of systems etc,” she said in Parliament.
Sitharaman said the country has added 139 GW of installed capacity, connected 2.8 crore households and added 1.41 lakh ckt km of transmission lines in the last six years.
Association of Power Producers director general Ashok Khurana said, “We welcome the announcement of the revamped reforms-based scheme for revival of the distribution segment (Rs 3,05,982 crore over 5 years). The Distribution segment has been the weakest link in the electrical system and providing assistance for infrastructure creation such as pre-paid smart metering and upgradation of systems, while tying the support to financial improvements, is vital for the sustainability of the entire power sector.”
