Discoms come under purview of states: Ministry

Following objections and reports pertaining to recent measures taken by the electricity distribution companies, the Centre today clarified that the distribution utilities functioned under the regulatory framework of respective states since power was a concurrent subject.

The Ministry of Power further said: “It is the state government that provides subsidy to distribution utilities in the tariffs set by the State Electricity Regulatory Commission (SERC).”

Following reports of distribution companies (Discoms) in six states to “either adopt privatisation or reduce their losses”, the Power Ministry said it was always committed to support state governments and distribution utilities.

In respect of Andhra Pradesh, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Tamil Nadu and Uttar Pradesh, it is mentioned that they have voluntarily participated in the ongoing Revamped Distribution Sector Scheme. Under the scheme, projects worth Rs 1.73 lakh crore have been sanctioned for these states.