ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Web Stories
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • IPL 2023
    • Karnataka Elections 2023
    • Viral
    • Education
    • Jobs
Read in App
Business News » India News

Proposed NPDC imperative to bring structural changes in power distribution: Ind-Ra

The proposed national power distribution company is imperative to bring structural changes in power ecosystem, India Ratings and Research (Ind-Ra) said today.   

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Proposed NPDC imperative to bring structural changes in power distribution: Ind-Ra
The proposed national power distribution company is imperative to bring structural changes in power ecosystem. Image source: Reuters

The proposed national power distribution company is imperative to bring structural changes in power ecosystem, India Ratings and Research (Ind-Ra) said today. The central government is reportedly contemplating on forming a national power distribution company (NPDC) to streamline the ailing power distribution network in the country, which is currently operated by state distribution companies (discoms), the ratings agency said in a statement.

The proposed NPDC's scope may complement technical and implementation capabilities of discoms, specially in implementing central government schemes in the power sector, it said.

The NPDC can co-exist with state discoms and own networks, and distribute power, forcing state discoms to increase their operational efficiency and doing away with political influences. 

A central government-backed counterparty will enable many existing power projects, including small scale, to access the capital market and avail fixed-interest bonds for a long tenure, Ind-Ra observed. 

It will address counterparty-related risks and help generation companies in gaining better credit ratings at a standalone level. 

At present, the credit ratings of existing power projects are capped at a certain maximum level by credit rating agencies, considering the weak financial position of state discoms and delays in payables to generators. 

The proposed NPDC would help in developing an alternative to these state-owned discoms for power generators and will uplift the whole sector sentiment. 

As the power ministry has increased the renewable purchase obligation (RPO) target to 21 per cent by 2022 from the current 17 per cent, the presence of an NPDC would lead to greater central control around the RPO compliance. 

According to the latest market reports, the outcome of Ujwal DISCOM Assurance Yojana (UDAY) until FY2016-17 has been mixed. Of the 31 states and UTs that signed up for the UDAY scheme, only six states and one union territory have reported to have met the respective FY2016-17 targets to reduce aggregate technical and commercial losses. 

Also, only 10 UDAY entities managed to narrow the gap between their revenue and costs until FY2016-17. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
NPDCUDAY
Written By: PTI
Updated: Wed, Jun 27, 2018
05:35 pm
PTI

LATEST NEWS

Eminent scholar-writer Vellayani Arjunan dies at 90

Coal India, PB Fintech, Sun Pharma, Mankind Pharma, and Lupin among top stocks to track today

Rajasthan free electricity scheme: CM Ashok Gehlot announces zero bill for users consuming up to 100 units every month — check details

LinkedIn scams via fake job offers, phishing on the rise - Here's how to avoid online job scams

India Gate basmati rice producer KRBL tanks 10% post-March quarter numbers

Vedanta Resources pays USD 400 mn debt, borrowings down to USD 6.4 bn

Anil Singhvi strategy May 31: Important levels to track in Nifty, Nifty Bank today

UEFA Europa League Final 2023, Sevilla FC vs AS Roma Preview: Serial UEL winners, or "The Special One"? — When and where to watch, timing, head-to-head, team news, venue, probable XI, squads

Gold prices today (May 31, 2023): Yellow metal hovers near Rs 60,00 — check out city-wise prices in Mumbai, Delhi and other cities

Monsoon onset in Bihar likely on June 13-14: IMD

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. Indiadotcom Digital Private Limited. All Rights Reserved.
LIVE TV