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NITI Aayog and RMI Release a Report on Power Distribution Sector

Newdelhi:3/8/21:Most power distribution companies (discoms) in India incur losses every year—total losses are estimated to be as high as Rs 90,000 crore in FY 2021. 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.

The report 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. ‘This 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.’

The report is divided into chapters focusing on structural reforms, regulatory reforms, operational reforms, managerial reforms, and renewable energy integration. Dr VKSaraswat, Member (NITI Aayog) said, ‘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, Clay Stranger, Managing Director, RMI said, ‘A robust and long-lasting solution to the woes of the discomsrequires 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 can be accessed here: https://www.niti.gov.in/sites/default/files/2021-08/Electricity-Distribution-Report_030821.pdf

About Editor in chief

Ashok Palit has completed his graduation from Upendranath College Soro, Balasore and post graduation from Utkal University in Odia Language and literture.. He has also carved out a niche for himself as a scribe of eminence after joining the profession in 1988. He is also an independent media production professional. He brings loads of experience to Advanced Media, Ashok Palit as a cineaste has been active in film criticism for over three decades. As a film society activist, he soared to eminence for his profound commitment to the art film appreciation and aesthetics of cinema. His mode of discourse is often erudite but always lucid and comprehensible marked by a perfect acumen so rare in the field. A film aesthete with an immense fond of critical sensibilities, he wrote about growth and development of odia cinema in New Indian Express, The Times of India, The Hindustan Times, The Asian Age and Screen. He has been working as an Editor for Cine Samaya from 2002-2004.. He had made solid contribution on cinema in many odia Dailies and weekly such as Samaj, Prajatantra, Dharatri, Samaya, Satabadi, and weekly Samaya.

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