CALLING PRIVATE PLAYERS

The government’s new announcements will incentivise greater private participation in the power and mining sectors

- ANILESH S. MAHAJAN

ON MAY 14, FINANCE MINISTER Nirmala Sitharaman announced a Rs 90,000 crore liquidity provisioning for distribution companies (discoms) to clear their dues with power generation companies (Rs 88,495 crore as of March 2020). The power ministry has unveiled two big reforms—the Atal Distribution System Improvement Yojana (ADITYA) and the New TariffPolicy (NTP). On May 16, Sitharaman announced the NTP, along with provisions to increase the pace of mining of coal and minerals— including the auction of 50 coal blocks to bring private players into the sector.

₹90,000 cr Liquidity provisioning for discoms to clear dues with power generation companies

50 Coal blocks being offered for commercial mining

THE REFORMS

• The NTP will make regulators more accountable and require them to follow the central government’s tariff policy. This includes a progressive reduction in cross-subsidies and reliable power supplies.