Central government plans to set up a national electricity distribution company

The central government is planning to set up a national electricity distribution company to ensure time-bound implementation of power schemes in the country. The decision has been taken considering the poor payment record of state-owned discoms and rising non-performing assets in the power sector, which have been contributing to stress in the banking sector as well. The national electricity distribution company will support state discoms in distribution activities, procure electricity at competitive rates and help address the issue of stressed assets in power generation.