Overview

Electricity is the backbone of the Indian economy where DISCOMs play a crucial role in last-mile delivery to consumers and are a key source of cash-in-flow in the electricity supply chain. However, the performance of Distribution Companies (DISCOMs) has remained a matter of concern, particularly with state-owned DISCOMs. Challenges such as high Aggregate Technical and Commercial (AT&C) losses, non-cost reflective tariffs, outdated infrastructure, and inefficient system-level planning persist, posing significant obstacles. These issues have a cascading effect, impacting all players in the power sector and jeopardizing their financial viability.

The FICCI-EY study has been conducted with a focus on identifying the shortcomings which has led to operational/financial inefficiency in the power distribution sector. The report covers various key components such as assessing the socio-economic impact of unreliable power, bringing in operational efficiencies through technological adaptation and different business models as well as highlighting the challenges and the required changes needed in regulatory and policy framework, market structure and infrastructure, thereby moving towards rehauling the power distribution landscape.

The FICCI-EY Report has been prepared in consultation with Industry, taking their inputs and suggestions for a progressive power distribution sector.

The FICCI - EY report on ‘Self-Sustainable Power Distribution Sector’ will be released on December 21, 2023 at FICCI, Federation House, Tansen Marg, New Delhi