New Delhi: By far the biggest reform in the power sector is going to happen through electricity distribution reform. The consumer will now be king. Apart from this, with the merger of some companies in the power sector in the next financial year, the government can also sell stake.
Energy Minister RK Singh says that there is going to be a reform in the electricity distribution sector. Existing companies will continue to do their work. The path will be opened for new companies to enter the sector. Companies no longer need to get licenses. Any company can sell electricity by registering. He informed that the state regulator will decide the maximum ceiling of the tariff. Companies can deliver electricity at low tariffs from sealing.
The government will not follow the path of Exchange Traded Fund i.e. ETF to sell stake in government companies. According to sources, the long-term valuation of government companies is being negatively impacted by the profitability of ETF investors. ETFs will no longer be used to sell shares as part of a plan to prevent the valuation of government companies from falling. The government does not intend to introduce a new installment of Bharat 22, CPSE ETF. CPSE shares have not picked up despite the rise in the stock market. Government wants investors to hold in CPSE for a long time.
