NITI Aayog’s (National Institute for Transforming India) Vice chairman Dr. Rajiv Kumar released a Report on the Power Distribution Sector titled ‘Turning around the Power Distribution Sector- Learnings and Best Practices from Reforms’.
- The report is co-authored by NITI Aayog, RMI (Rocky Mountain Institute), and RMI India.
- The report provides ways to transform India’s Power distribution sector.
Key findings of the Report
i.Distribution Sector has been one of the major weak points of India’s Power sector.
- Most of the power Distribution Companies (DISCOMS) incur losses every year, the total losses were estimated to be around INR90,000 crore in FY 21.
- Due to the losses Discoms were unable to pay the power generators on time and an amount of INR 67,917 crore was overdue as of March 2021.
- The losses of Discoms declined from a peak of Rs 76,878 crore in 2011-12 to Rs 33,596 crore in 2017-18. However, losses increased sharply in 2018-19.
- The COVID-19 pandemic and the lockdown have further dented the finances of the Discoms.
ii.In Delhi, Post privatisation of Power Distribution Companies, the Aggregate Technical & Commercial losses (AT&C) have reduced from 55% in 2002 to about 9% in 2019.
Fact – India has set a Target of building 450 GW of Renewable Energy capacity by 2030.
The report proposes recommendations like Greater autonomy for state-owned Discoms, increasing competition, Encouraging Public Private Partnerships (PPP) model, increasing collection and Billing efficiency and others to strengthen the Discoms.
Government Schemes to help Discoms
A series of Schemes such as Ujjwal DISCOM Assurance Yojana (UDAY), DeenDayalUpadhyaya Gram JyotiYojana (DDUGJY), and Integrated Power Development Scheme (IPDS) to upgrade the distribution infrastructure & help Discoms to improve their finances.
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About NITI Aayog
It was established on January 1, 2015.
Chairperson – Prime Minister of India (Narendra Modi)
Vice-Chairman– Dr. Rajiv Kumar
About RMI (Rocky Mountain Institute)
An Non-Governmental Organisation (NGO) established in 1982.
CEO – Jules Kortenhorst
Headquarters – Colorado, USA