Power distribution business to be privatised in Union Territories

Union Territories directly come under the central government. Hence, the path to privatisation is easier

Taking a leap towards enhancing private investment in power distribution companies (discoms), Union finance minister (FM) Nirmala Sitharaman on Saturday said the power distribution business in the Union Territories (UTs) would be privatised. This is the first such step after the draft amendments to the Electricity Act, 2003, were made public last month with the proposal of private participation in electricity distribution. 

She said this could provide “a model for emulation by other utilities across the country” which will lead to better service to consumers and improvement in operational and financial efficiency in power distribution. 

Delhi is the only Union Territory which