NTPC, PGCIL sign MoU to set up pan-India power distribution company

NTPC Limited and Power Grid Corporation of India Limited (PGCIL) have signed a MoU for setting up National Electricity Distribution Company Limited (NCDCL), a pan-India power distribution company (discom) in an equal joint venture (JV) to undertake the business for distribution of electricity in distribution circles in various states and union territories and other related activities on June 21, 2019.

The new public sector unit will focus on aggregating electricity demand in the country and catering to it. Moreover, the state-owned discoms have been beleaguered by issues such as low collection, increase in power purchase cost, inadequate electricity tariff hike, inadequate subsidy disbursement and increasing government department dues. Besides, the poor payment records of discoms and rising non-performing assets in the power sector has caused further stress. NEDCL will procure electricity at competitive rates and help address the issue of stressed assets in power generation.

GET ACCESS TO OUR ARTICLES

Enter your email address