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Govt working on proposal for separating content, carriage in power sector

24 Dec 2013 Evaluate

In a move that would lead to more competition in the power space, the government is working on a proposal where separate entities would handle electricity supply and distribution. Further, discussions are already progressing with various stakeholders, including state power utilities on the proposal.

As per the separate carriage and content model, one company would own the network while different entities would be supplying electricity. However, if implemented, this idea would not be a unique one as similar business models are already in place in some countries, including the United Kingdom (UK). However, presently in India, distribution companies (discoms) supply as well as manage network that provides electricity for residential and commercial purposes.

Further, the need for such a system is being hugely felt as current system is also perceived to be raising concerns about fair competition in the market, since there is conflict of interest when the same entity is into supplying electricity as well as managing the network that carries it.

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