The Centre requests the NTPC and Power Grid Corp. to form a joint venture for helping in the revival of state retailers in India

The proposed venture between NTPC and Power Grid would manage challenging distribution areas.

From the capital of the country, the federal government of India has requested the country’s major producer of state power and Transmission Company to collaborate with them for the formation of a joint venture by taking over the distribution network of electricity in the various economically disturbed retailers of the state. This was told by various people that are concerned and familiar with the structure of the plan.

This projected joint venture is likely to be between the NTPC and the Power Grid Corp. of India for collaboration in order to efficiently manage the areas of distribution that are facing challenges of different sorts. These distribution areas are those in which the retailers who are called “discoms” are facing several difficulties that revolve around the theft of electricity as well as other complications. This was reported by people who wished to remain anonymous since they were not officially allowed to speak about the proposed venture.

The country’s power ministry, as well as the companies, chose to remain silent on this issue, despite the flooding of email and messages asking them to comment in this regard.

This joint venture plans on charging a fee from the retailers/discoms that are willing to seek electricity theft prevention methods, as well as interested in getting cheaper power from the suppliers. Additionally, it would be ensuring that there is an improved method of collection and billing for the retailer.

This extension of access to electricity would lead to a revival in the areas of lower usage of power making the distribution of electricity an unprofitable business. The Prime Minister of India, Narendra Modi, promised to bring electricity to each and every home was elected for this very reason, has taken efficient measures for improving the position of the economically weak retailers.

A company focused on distribution nationally is likely to face various issues in case the governments of the states are unwilling to surrender their control on the distribution of electricity locally.