Hyderabad: In a major reform measure, the Union power ministry has stated that state power distribution companies (discoms) will not get grants or loans unless they privatise their distribution networks. This is meant to offer consumers the option of choosing their power network, just as they choose their cellphone service and gas connections. Unless they privatise, discoms will not be eligible for grants or loans from the Centre or the Power Finance Corporation (PFC) and the Rural Electricity Corporation (REC).
Union power minister R.K. Singh revealed this in an interview to a magazine. Mr Singh said, “Where you have a number of suppliers in the business of providing electricity to consumers, the consumer has a choice just as you have a choice with your mobile, If I don’t like Airtel, I will switch to Vodafone.” NITI Aayog has proposed the privatisation of power supply and the Union power ministry is in favour of this proposal.
