Article : Is Privatization A Panacea For Reforming Discoms?

A vibrant and sustainable power sector is essential to invigorate Covid-19 ridden economy. Electricity distribution is more vital during a pandemic to run our healthcare systems and other economic activities. But the situation is alarming as financial losses of power distribution companies (DISCOMs) are increasing. The Ministry of Power intends to privatize DISCOMs, starting with Union Territories, as a key intervention to resurrect the power distribution business and thereby the overall Power sector. The selection of UTs as a starting point gives the advantage of a quick start and also high chances of initial success as power distribution companies in UTs are better off. While the move pushes laudable sectoral reforms, the much-needed depth and preparedness amongst private sector players are missing.


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Smart Grid Bulletin October 2020

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