Government Lining Up Big-ticket Reforms To Energise Indian Power Sector

The government is lining up big-ticket power sector reforms that will change the architecture of domestic electricity market, make it more responsive and reduce cost for distribution utilities as well as consumers through intense competition.

The power ministry has set up an expert group headed by special secretary in the ministry to chart a course for “deepening of power markets in India”. Simultaneously, the ministry has also appointed consultants EY (Ernst & Young) to suggest ways to bring alive the power market by identifying the voids in the current system.

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The reforms push, potentially the biggest since the enactment of the Electricity Act of 2003, has been initiated as part of power minister R K Singh’s efforts to lay a roadmap for a thriving domestic power market by 2030 to ensure the Narendra Modi government’s objective of providing 24X7 affordable and quality power.

“We are going to bring about a wholesale change the way we approach the power market. The idea is to make the sector more responsive and viable so that investments can come. Make it accountable to consumers on quality of service. Giving rights to consumers. Deepening of market is to create competition and encourage efficiency and flexibility,” Singh told TOI on Wednesday, confirming the ministry’s move.

Source: Economic Times

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