NTPC and Power Grid Corp to form distribution joint venture

India: NTPC Ltd and Power Grid Corp. of India Ltd have agreed to set up the National Electricity Distribution Company, a pan-Indian power distribution firm in an equal joint venture.

The new public sector unit will focus on aggregating electricity demand in the country and cater to it and may also take over weak electricity distribution utilities. It will comprise of cadre on deputation from other public sector units and is being set up at a time when the state-owned distribution companies (discoms) are struggling with their finances on account of losses and borrowings.

In such a situation, a national electricity distribution company can procure electricity at competitive rates and help address the issue of stressed assets in power generation.

The plan is to set NCDC up along the lines of Energy Efficiency Services Ltd which is under the administrative control of the power ministry. EESL is an energy services company, jointly operated by four state-run firms—NTPC Ltd, Power Finance Corporation, Rural Electrification Corporation and Power Grid Corp. of India Ltd.

Source: Steel Guru