Summary:
ince past few years India has been witnessing big companies like Tata Power, Torrent Power, Feedback Energy Distribution Company (FEDCO), Essel Infra, and Deloitte providing power in states. Well, this has not improved the power situation drastically but reform in power sector have shown up signs of progress in urban and semi-rural India with several states tying up with private players.
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Since past few years India has been witnessing big companies like Tata Power, Torrent Power, Feedback Energy Distribution Company (FEDCO), Essel Infra, and Deloitte providing power in states.
Well, this has not improved the power situation drastically but reform in power sector have shown up signs of progress in urban and semi-rural India with several states tying up with private players.
This move to upgrade the states’ power distribution business has generated robust opportunities for public and private firms in consultancy, distribution franchisee, operations & management.
Companies believe that joining the Ujwal Discom Assurance Yojana (UDAY) approved by the Union cabinet in November 2015, meant for state-owned power distributors, helps the private sector too to tide over their financial distress and could even lower power tariff by 75 paise per kilo watt hour.
Former Union power minister Piyush Goyal had proposed amendments to UDAY so that private power distribution companies too can benefit from it.
It is, however, for the state governments concerned to decide whether to take over the debt of a particular private power distributor.
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