ECONOMY

Power Sector Check – Revamped Distribution Reform Receives Go-Ahead For Implementation: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

The Union ministry of power has issued a memorandum providing details on the revamped, reforms-based and results-linked distribution sector scheme for supporting discoms to undertake reform and improve performance in a timebound manner, as announced in the FY22 Union Budget.

The scheme is aimed at providing 24×7 uninterrupted, quality, reliable and affordable power supply and seeks to improve discoms’ operational efficiencies and financial sustainability based on state-specific action plans.

Total outlay for the scheme is Rs 3,038 billion over FY22-FY26.

It is implicit in the scheme that discoms that are not able to reform and plug losses will have to give way to privatisation (delicensing is proposed in the draft Electricity Amendment Bill), since states don’t have enough fiscal space to keep funding power sector losses.

We believe results from implementation of this scheme will positively impact the entire value chain, revive capex and rerate the sector

Click on the attachment to read the full report:

ICICI Securities Power Sector Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Most Related Links :
editorpen Governmental News Finance News

Source link

Back to top button