An agreement has been signed between NTPC Limited and POWERGRID for setting up National Electricity Distribution Company Ltd. (NEDCL) – a pan-India power distribution firm in an equal joint venture through JVC on 50:50 equity basis. ‘The main aim is to undertake the business for distribution of electricity in distribution circles of India & related activities.’ Powergrid said in a tweet.
According to the MoU signed on 21st June 2019 in New Delhi, the new public sector unit will focus on aggregating electricity demand in the country and cater to it and may also take over weak electricity distribution utilities. It will comprise of cadre on deputation from other public sector units and is being set up at a time when the state-owned distribution companies (discoms) are struggling with their finances on account of losses and borrowings. In such a situation, a national electricity distribution company can procure electricity at competitive rates and help address the issue of stressed assets in power generation.