The Union ministry of power has drafted a ‘Standard Bidding Document’ (SBD) for the privatisation of the state-owned power distribution companies. This will be the guiding document for state governments that want to offer their discoms to private companies.
This is the first time the central government has drafted a guiding SBD for discoms’ privatisation. It is in line with the Centre’s efforts to improve the operations and finances of state discoms. Last year, the ministry of power had suggested several private franchisee models to states for the power distribution sector. The stakeholders can send their comments by October 5, 2020.
The power sector follows a federal structure, wherein distribution is a state subject and the Centre has a guiding role. However,