POWER

NTPC, REC may give privatisation push for UTs power distribution

The Central government’s plan to privatise power distribution sector across the country starting with union territories (UT) has evinced interest from state-owned companies such as NTPC and REC, which through their subsidiaries are expected to bid for privatisation projects on offer in the first phase.

Sources privy to the development said that the companies would take the special purpose vehicle route (SPV) for bids for each distribution area to prevent transfer of one state-run entity being taken over by another government run enterprise. This would defeat the purpose of privatisation and hence SPV would be set up as complete private entities having professional management capable of running distribution operations efficiently.

As part of the Rs two lakh crore Atmanirbhar Bharat (self-reliant India) package, Finance Minister Nirmala Sitharaman also announced privatisation of distribution business in the country starting with union territories.

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