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NITI Aayog Vice Chairman Rajiv Kumar releases Report on Power distribution sector

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NITI Aayog and RMI release report on power distribution sectorNITI 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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March 10, 2021, NITI Aayog along with RMI India released the ‘Mobilising Finance for EVs in India: A Toolkit of Solutions to Mitigate Risks and Address Market Barriers’ report.

About NITI Aayog

It was established on January 1, 2015.
Chairperson – Prime Minister of India (Narendra Modi)
Vice-Chairman– Dr. Rajiv Kumar
Headquarters-New Delhi

About RMI (Rocky Mountain Institute)

An Non-Governmental Organisation (NGO) established in 1982.
CEO – Jules Kortenhorst
Headquarters – Colorado, USA