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Report on Privatization

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Report on Privatization
1.2 Privatisation of distribution in Delhi

Delhi Electricity Reform Act was notified on 8th March 2001 providing for constitution of Electricity Regulatory Commission, restructuring of electricity industry and increasing avenues for participation of private sector for taking measures conducive to the development and management of the electricity industry in an efficient, commercial, economic and competitive manner. In terms of the provisions of the Reforms Act and on the basis of the recommendations of the consultant, the Government of NCT of Delhi unbundled Delhi Vidyut Board (DVB) into six successor companies viz.,

• GENCO (Indraprastha Power Generation Company Limited) for generation of electricity,

• TRANSCO (Delhi Power Supply Company Limited) for procurement, transmission and bulk supply of electricity,

• three distribution companies namely, DISCOM 1 (Central-East Delhi Electricity Distribution Company Limited), DISCOM 2 (South-West Delhi Distribution Company Limited) and DISCOM 3 (North-North West Delhi Distribution Company Limited); and

• one holding company (Delhi Power Company Limited).

Major equity of DISCOM 1 (Central East Delhi Electricity Distribution Company Ltd.) has been divested to BSES Yamuna. Major equity of DISCOM 2 (South-West Delhi Distribution Company Ltd.) has been assigned to BSES Rajdhani. Tata Power took over the major equity of DISCOM 3 (North- North West Delhi Distribution Company Ltd.) as North Delhi Power Limited.

The performance of the Private Distribution Companies in Delhi is at Annexure-II.
1.3 Privatisation of Distribution in Uttar Pradesh
The Government of Uttar Pradesh has called for expression of interest for private sector participation in the distribution system in a few district of the state.
1.4 Impact of Privatisation on Distribution
Reliability Index:
Impact of privatisation on distribution in Delhi on reliability index can be assessed from the following table:-
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