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

NTPC Limited and Power Grid Corporation of India Limited (Powergrid) have signed an MoU for setting up National Electricity Distribution Company Limited (NCDCL), a pan-Indian power distribution company, in an equal JV for undertaking electricity distribution business in various states and union territories, and other discom-related activities. 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 increase in the government department dues. The poor payment records of discoms and rising non-performing assets in the power sector have caused further stress. National Electricity Distribution Company Limited will procure electricity at competitive rates and help address the issue of stressed assets in the power generation segment.

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