Rs 3-trillion new Discoms Reform Scheme: Why it might work this time?

New Discoms Reform Scheme: Financially and operationally ailing power distribution companies (discoms) in the country have got another chance of revival with the Rs 3-trillion reform scheme. The fifth scheme in two decades and the second by the ruling BJP government, this scheme aims to reduce losses of discoms, and introduce technological solutions and private investment in power distribution space. 

The scheme provides for strict criteria of selection and fund disbursement for the discoms. As it will become the umbrella scheme for all power sector reforms, this ambitious plan aims at smart metering, power infrastructure improvement, making discoms profitable and adopting new-age technology for demand supply management.

To understand the scheme better, Business Standard spoke with energy specialist Vivek Sharma, senior director at CRISIL Limited. Sharma discussed the shortfalls of past schemes, what the current Rs 3-trillion plan will offer, and what impact it will create