Will delicense discoms to end monopolies: Power minister R K Singh
The government will delicense the electricity distribution sector to end monopolies, allowing any company to supply power in any area, power and renewable energy minister R K Singh told ET.
The move will induce competition in electricity distribution and empower consumers to switch networks but will not disrupt the existing licenses, he said.
Singh said the government has dropped a proposal on direct benefit transfer (DBT) of subsidy to electricity consumers and instead would first watch the impact of multiple distribution companies in a geographical area.
The power ministry will soon circulate a draft bill proposing amendments in the Electricity Act to omit the word ‘distribution licensee’ to enable more competition in power distribution. Singh said the Electricity Act of 2003 provides for distribution infrastructure sharing by eligible licensees.
“What we have in mind is simply delicensing. The existing distribution companies will remain as they are.
