Expert Group set up under B. K. Chaturvedi for Revamp of Power Sector

To push through power reforms and unlock the power sector, the UPA-II Government set up an expert group to suggest restructuring of power utilities of seven major States, including Tamil Nadu and Uttar Pradesh.

The plan for reforms follows a recent government report that revealed that the accumulated losses of the power utilities across the country ran into Rs.1.50-lakh crore and annual losses were around Rs.55.000 crore.
The government is to initiate a major reform in the shape of open access allowing consumers of above 1 MW to choose their preferred electricity supplier.

Task of the Expert Group

The expert group headed by Planning Commission member (Energy) B. K. Chaturvedi is expected to submit its report by March 2012. The group was entrusted with the responsibility to make an assessment of the cumulative losses of distribution utilities of seven major States, including Uttar Pradesh, Tamil Nadu and Rajasthan. It was asked to suggest a strategy for capital restructuring of these power discoms (distribution companies), including commitment by other stakeholders like State governments. It will also have to suggest a road map and monitoring mechanism for implementing the above.