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NITI Aayog CEO says discoms need to be privatised to increase efficiency
NITI Aayog Chief Executive Officer Amitabh Kant today said government owned power distribution companies were largely inefficient.
Talking at the India Power Forum, Kant said in order to increase the efficiency, power discoms needed to be privatised.
Kant also criticized the various policies launched by different governments to bail out the discoms for the acute cash crunch.
“Many policies have come, Ujjwal, UDAY…But in order to increase efficiency, discoms need to be privatised,” Kant said.
He further added efficiency of discoms will increase only when when there will be a reduction in aggregate technical and commercial (AT&C) losses.
He said use of net metering could provide a solution to the problem of high AT&C losses.
He, however, highlighted the issue of discoms not being able to charge users properly for the electricity they are consuming.
He suggested introduction of direct benefit transfer (DBT) in the power sector for targeted electricity subsidy.
Adding to that, Kant said with the growing installation of renewable energy across the country and a global pressure to cut use of coal, India should also give up using diesel.
He said along with a push for renewables, cutting diesel usage would help the environment. Adam Lowry Authentic Jersey
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