Power Distribution in India Outlook Update (Q1 2020)

The Electricity Amendment Bill, 2014, was proposed to boost competition in the Indian power space through the restructuring of the distribution and supply businesses. As per the amendment, power distribution is to be separated from the retail portion, i.e. carriage (distribution network) and content (electricity supply business) or C&C are to be separated. The aim was to provide consumers with more suppliers to choose from, as the amendment proposed multiple supply licensees to share space within a distribution area. However, the amendment has not been enacted owing to challenges in its implementation. Recently, in CY 2019, center has again drawn up a draft model plan for states that will allow multiple private franchisees to operate as power suppliers in a distribution area, with state-run distribution utilities becoming just owners of the network. This for sure can help in improving efficiency of discoms by enthusing competition in the sector, which can indeed help discoms to squeeze it’s outstanding overdue amount to gencos.

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• First hand sector knowledge and inputs
• Primary research inputs from F2F interviews with domain experts
• Experts insights and market reviews taken into consideration
• Validated data and analysis
• Opportunity mapping and market sizing
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Key Trends

• The Andhra Pradesh government approved INR 29.84 billion to distribution companies in the state towards the payment of 25% of their losses, allowing them to clear their power dues
• 86.29% of the total bonds amounting INR 2,32,163 Crore issued till date, of INR 2,69,056.35 Crore to be issued under UDAY scheme
• 83% of the feeder segregation target under UDAY achieved till date

Key Investments

• L&T won an order in Gujarat to construct a 765kV double circuit transmission line that will help transmit power from renewable energy sources
• EESL plans to invest INR 25,000 crore on the smart meter program over next five years starting from Q1, 2020.
• Leading private power companies have pledged interest in state-run distribution entities (discoms), which could come their way under a new government policy/UDAY 2.0.

Must Buy For

• Government Power Distribution Companies
• Private Power Distribution Companies
• Power Distribution Franchisee
• Transmission Utilities
• Power Generation Companies
• Renewable Power Developers
• Independent Power Producers
• Power Research Institutes
• Research Firms/Associations
• Industry Associations / Technical Consulting Group
• Financial Institutes
• Key Governing Bodies