NITI Aayog -RMI Release a Report on Power Distribution Sector

NITI Aayog has released a report on Power Distribution Sector that presents reform pathways to transform India’s power distribution sector.

Highlights

  • Report was released providing steps to improve policy making in distribution sector.
  • Report is titled as “Turning Around the Power Distribution Sector”.
  • It has been jointly authored by NITI Aayog, RMI and RMI India.

What was the need of report?

In India, Power distribution companies (DISCOMs) incur losses every year. In financial year 2021, total estimated losses are as high as Rs 90,000 crore. Because of these losses, DISCOMs are unable to pay power generators on time, make investments to ensure high-quality power, or to prepare for use of variable renewable energy. Thus, this report becomes significant as it presents review of reform efforts in Indian and global power distribution sector.

About the report

Report extracts learnings and best practices from wealth of policy experience existing in India. It examines several important reforms including role of private sector in distribution, regulatory oversight, power procurement, integration of renewable energy and upgradation of infrastructure. Report is divided into chapters that focuses on structural reforms, operational reforms, regulatory reforms, managerial reforms, and renewable energy integration. It presents policymakers with several reform options in order to put distribution sector on the track of efficiency and profitability.

RMI India

It is an independent non-profit organization working towards accelerating transition to a clean, prosperous and inclusive energy future. It engages with government, industry, and civil-society leaders in order to design innovative policy frameworks and market solutions to extend support to India’s clean energy and mobility transformation. RMI India collaborates with Rocky Mountain Institute (RMI) of USA.

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