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Rs. 3,05,984 Crore scheme to be launched for a Revamped Reforms-based Result-Linked Power Distribution Sector

Press Information Bureau:  February 02, 2021

Expressing serious concern over the viability of power distribution companies, Union Minister for Finance and Corporate Affairs, Ms. Nirmala Sitharaman in her budget speech of 2021-22, proposed an outlay of Rs. 3,05,984 crore (US$ 41.96 billion) over 5 years for a  revamped reforms- based result-linked power distribution sector Scheme. The Scheme will help DISCOMS for infrastructure creation, including pre-paid smart metering and feeder separation, up gradation of systems, etc. tied to financial improvements.

In her budget speech, Ms. Sitharaman also pointed towards the monopolies of distribution companies across the country and proposed to put in place a competitive framework to give consumers alternatives to choose from among more than one distribution companies.

“The past 6 years have seen a number of reforms and achievements in the power sector, we have added 139 Giga watts of installed capacity, connected an additional 2.8 crore households and added 1.41 lakh circuit km of transmission lines”, said Ms. Sitharaman.

For a green and sustainable future, the Finance Minister also proposed to launch a comprehensive National Hydrogen Energy Mission in 2021-22 for generating Hydrogen from green power sources fulfilling the announcement made by Prime Minister in November 2020.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.