FM Nirmala Sitharaman unveils tariff policy reforms for power sector

Finance Minister Nirmala Sitharaman on Saturday announced tariff policy reforms related to power sector toward ensuring Atmanirbhar Bharat. Addressing her fourth press briefing today, Sitharaman said the government will ensure that inefficiencies  of discoms do not become burden for consumers. The new policy will also define standards of service and associated penalties for discoms.

Discoms will have to ensure adequate power for consumer, the FM said adding that load shedding would be penalised.

The new policy will also ensure progressive reduction in cross subsidies across the industry.

FM Nirmala Sitharaman announces policy reforms to fast-track investment

In order to ensure transparency, government will pick generation and transmission project developers on a competitive basis.

 The minister also announced power departments/utilities in Union Territories will be privatised to ensure sub-optimal performance of power distribution and supply. This will lead to better service to consumers and ensure operational and financial efficiency in distribution.

This is the fourth press briefing by the FM in as many days to announce the details of the Rs 20 lakh crore economic stimulus package announced by PM Narendra Modi during his address to the nation on May 12, vowing to make the country 'atma-nirbhar' or self-reliant.