Turning Around the Power Distribution Sector – NITI AAYOG report

Many efforts have been made to turn around the distribution sector. A series of schemes was launched, by central and state governments, to upgrade the distribution infrastructure and help the discoms improve their finances. Some of these initiatives include Ujjwal DISCOM Assurance Yojana (UDAY), Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), and Integrated Power Development Scheme (IPDS). A revamped reform scheme, with an allocation of Rs 3.05 trillion, was also announced in this year’s Budget. However, the schemes implemented so far have not been able to ensure a sustainable turnaround of the discoms. A turnaround, in terms of both finances and operations, remains urgent.

The report, prepared as a collaboration between NITI Aayog and Rocky Mountain Institute (RMI), USA, presents a review of the reform efforts in the Indian distribution sector. The report aims to contextualise learnings and best practices from domestic as well as global experience, to provide a set of options for state governments that are considering further reforms to put their distribution sector on the track to efficiency and profitability.

Download the report here

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