Speaking at CNBC-TV18’s CII Budget Barometer, Sardana said the power sector was hoping the Budget would create momentum for deeper structural change, including privatisation of electricity distribution companies.
“One hopes truly that privatisation of the distribution sector really takes off. We often see one step ahead and two steps behind,” Sardana said.
He pointed to Uttar Pradesh as an example, where privatisation of discoms was earlier proposed but has since been put on hold. “Privatisation of UP discoms was on the cards, but it has been put off now. That’s bad news,” he said.
Sardana said sustained reform in distribution is critical for the long-term health of the power sector, even as discom finances have improved in recent years. He added that industry participants would be closely watching whether the upcoming Budget delivers a clear signal on whether discom privatisation will finally gather pace.
