<p>Soon electricity consumers will have an option to choose their power distribution company as the Centre announced sweeping reforms in the power sector.</p>.<p>At present, distribution companies across the country are monopolies, either government or private.</p>.<p>"There is a need to provide choice to consumers by promoting competition. A framework will be put in place to give consumers alternatives to choose from among more than one," Union Finance Minister Nirmala Sitharaman said while presenting Union Budget 2021.</p>.<p>Welcoming the reforms, Union Power Minister R K Singh said, "The policy announced in Budget will provide choices to the consumers, bring competition and eliminate monopoly of discoms. It is a big change."</p>.<p>The Finance Minister also announced a revamped reforms-based result-linked power distribution sector scheme with an outlay of Rs 3,05,984 crores over 5 years.</p>.<p>The scheme will provide assistance to discoms for infrastructure creation including prepaid smart metering and feeder separation, upgradation of systems, etc., tied to financial improvements, the Finance Minister said.</p>.<p>These announcements are aimed at ensuring 24X7 power for all as envisaged by the Centre.</p>.<p>Last year, the government had enforced rules for the power sector to ensure delivery of services.</p>.<p>But cash-strapped discoms - which are mostly owned and run by the state - are unable to buy sufficient power to provide round the clock supply. Total outstanding dues of the discoms towards power generating firms stood at over Rs 1.35 lakh crore as of December 2020.</p>.<p>To revive discoms, the Centre in November 2015 introduced the UDAY (Ujjwal DISCOM Assurance Yojana).</p>.<p>According to the scheme, discoms were envisaged to turn around financially within three years from signing agreements under it.</p>.<p>"The past 6 years have seen a number of reforms and achievements in the power sector. We have added 139 Giga Watts of installed capacity, connected an additional 2.8 crores households and added 1.41 lakh circuit km of transmission lines," Sitharaman said.</p>
<p>Soon electricity consumers will have an option to choose their power distribution company as the Centre announced sweeping reforms in the power sector.</p>.<p>At present, distribution companies across the country are monopolies, either government or private.</p>.<p>"There is a need to provide choice to consumers by promoting competition. A framework will be put in place to give consumers alternatives to choose from among more than one," Union Finance Minister Nirmala Sitharaman said while presenting Union Budget 2021.</p>.<p>Welcoming the reforms, Union Power Minister R K Singh said, "The policy announced in Budget will provide choices to the consumers, bring competition and eliminate monopoly of discoms. It is a big change."</p>.<p>The Finance Minister also announced a revamped reforms-based result-linked power distribution sector scheme with an outlay of Rs 3,05,984 crores over 5 years.</p>.<p>The scheme will provide assistance to discoms for infrastructure creation including prepaid smart metering and feeder separation, upgradation of systems, etc., tied to financial improvements, the Finance Minister said.</p>.<p>These announcements are aimed at ensuring 24X7 power for all as envisaged by the Centre.</p>.<p>Last year, the government had enforced rules for the power sector to ensure delivery of services.</p>.<p>But cash-strapped discoms - which are mostly owned and run by the state - are unable to buy sufficient power to provide round the clock supply. Total outstanding dues of the discoms towards power generating firms stood at over Rs 1.35 lakh crore as of December 2020.</p>.<p>To revive discoms, the Centre in November 2015 introduced the UDAY (Ujjwal DISCOM Assurance Yojana).</p>.<p>According to the scheme, discoms were envisaged to turn around financially within three years from signing agreements under it.</p>.<p>"The past 6 years have seen a number of reforms and achievements in the power sector. We have added 139 Giga Watts of installed capacity, connected an additional 2.8 crores households and added 1.41 lakh circuit km of transmission lines," Sitharaman said.</p>
