
Abstract
India is the third-ranking electricity generator in the world and has one of the most complex power sectors. Specifically, the distribution of power is the most important link in the value chain of the power sector, as it is the cash register for the entire sector. Over the past few decades, the country has witnessed a remarkable evolution of this sector. We have now achieved 100% electrification of all households across the country. However, most State-owned electricity distribution companies (DISCOMs) that distribute 95% of the electricity across India are not working in the interest of the taxpayer or the ratepayer. The accumulated losses of the State-owned DISCOMs have crossed Rs.5.22 lakh crore by March 2020, even after three major handouts from the taxpayer over the past 20 years. Furthermore, the State-owned DISCOMs and their independent regulation make for a strange pair. As the government is presumed to serve public interest, government ownership precludes external regulation. I will, therefore, in this presentation, discuss the critical reforms required to ensure a sustainable turnaround of India’s power distribution sector.
About the speaker
Mr Soumya Deep Das is a doctoral scholar in the Energy, Environment and Climate Change Programme of NIAS, Bengaluru. The subject of his doctoral dissertation relates to the ways forward for the viability of the power distribution sector in India, with particular reference to Karnataka. His research is part of a larger project, funded by the Ministry of Earth Sciences, Government of India.