Govt. Proposes Power Grid-NTPC JV to Support Resuscitate State Retailers

The Central government has announced that it has asked NTPC to enter into a joint venture that would take over electricity distribution in areas from economically distressed state retailers.

The suggested venture between NTPC and Power Grid Corp. of India would manage perplexing distribution areas where the retailers, known as DISCOMS, face power theft and other difficulties.

As part of the plan, the JV would be estimated to charge discoms a fee for services that would include seeking power theft prevention, sourcing cheaper power and improving billing and collections.

Reviving India’s unwell distributors is seen as key to extending electricity access, particularly in the landscape, where low power usage makes distribution a loss-making business. Prime Minister Narendra Modi has stepped up efforts to reinforce the country’s delicate retailers ahead of a general elections expected this year