J-K Govt has commissioned study on privatisation of power distribution: Minister

SRINAGAR — The Jammu & Kashmir Government has commissioned a study to assess suitable options regarding privatisation of power distribution, Union Minister of Power and New & Renewable Energy, R K Singh said on Thursday.

In a written reply to a question by parliamentarian Prof. Sougata Ray whether the government proposes to privatise the entire power distribution in the country, the Minister said electricity is a concurrent subject and distribution of electricity in States is handled generally by the State distribution utilities (Discoms). Accordingly, he said, decision to privatise the power distribution in the States lies with the concerned State Government.

Government of India announced privatisation of Power Departments & Utilities in Union Territories (UTs) under Aatma Nirbhar Bharat Abhiyaan, he said.

“The decision is guided by sub-optimal performance of power distribution utilities and the objective of providing better services to consumers with improvement in operational and financial efficiencies,” he said, adding, “As per the decision of the Government of India, various UTs have undertaken steps for privatization of their electricity distribution for which Ministry of Power has provided transaction advisory support.”

Regarding the status, he said UT of Chandigarh has received bids. The UTs of Dadra, Nagar Haveli (DNH) & Daman Diu (DD) have also received bids and bids have been evaluated, he said.

The UTs of A&N Islands and Lakshadweep are at Request for Proposal (RFP) finalization Stage while the Government of UT of Puducherry is currently at the RFP finalisation stage, he said.

“The UT of Jammu & Kashmir has commissioned a study to assess suitable options in this direction,” the minister added.