NITI will partner with some of the states to take these reforms forward
Changes in policy, organisational and managerial systems as well as technological reforms are needed for most of the Indian power distribution companies (discoms) which incur losses every year. For FY 2021, the discoms have posted as much as Rs.90,000 crore of losses, according to a report on the industry.
Due to these accumulated losses, discoms are unable to pay generators on time, make investments required to ensure high-quality power or prepare for greater use of variable renewable energy, said the report, Turning Around the Power Distribution Sector, co-authored by NITI Aayog, RMI and RMI India.
Dr V K Saraswat, Member (NITI Aayog), added, “This report presents policymakers with a menu of reform options to put the distribution sector on the track of efficiency and profitability. NITI will partner with some of the states to take these reforms forward.”
Highlighting the need for addressing current challenges, RMI Managing Director Clay Stranger said, “A robust and long-lasting solution to the woes of the discoms requires changes in policy as well as organisational, managerial, and technological reforms. Different states have travelled along different pathways of reforms, giving a rich set of policy experiments to learn from.”
The report, released on 3 Aug 2021, presents a review of reform efforts in the Indian and global power distribution sector. It extracts the learnings and best practices from the wealth of policy experience that exists in the country.
“The report examines many important reforms, such as the role of the private sector in distribution, power procurement, regulatory oversight, integration of renewable energy and upgradation of infrastructure,” said NITI Aayog ViceChairman Dr Rajiv Kumar.
“A healthy and efficient distribution sector is essential, whether for improving the ease of doing business, or for improving the ease of life,” he stressed.
The report is divided into chapters focusing on structural reforms, regulatory reforms, operational reforms, managerial reforms, and renewable energy integration. #technology #banking #investment #infrastructure #projects #energy /fiinews.com
