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View: Why setting up of a National Power Distribution Company is the need of the hour

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India cannot continue to wait indefinitely for voluntary discom reforms. It’s time for an NPDC.

Synopsis

The first major reform took place in the mid-1990s — the unbundling of SEBs into separate generation, transmission and distribution entities, with substantial technical and financial assistance from the World Bank. This was followed by two seminal interventions — Accelerated Power Development Reforms Programme (APDRP) in 2002 and the Electricity Act, 2003.

The suggestion for a National Power Distribution Company (NPDC) has been around for almost three years. Post-independence, the power sector comprised State Electricity Boards (SEBs) established under the Electricity Supply Act, 1948. These were set up as vertically integrated utilities handling generation, transmission and distribution. SEBs operated for decades without regard to commercial concerns. Electricity became a tool for appeasement,

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