States must decide whether DISCOMs are treated as Commercial or Social Entities; FIs should not shy away from lending to Clean Tech Projects: PHDCCI

No. PR – 287

July 7, 2022

New Delhi

States must decide whether DISCOMs are treated as Commercial or Social Entities; FIs should not shy away from lending to Clean Tech Projects: PHDCCI

PHDCCI organized their DISCOM Conclave on 6 July 2022 at New Delhi with the theme – Initiatives by DISCOMs for Providing Clean Power to Industry. The Chief Guest, Mr Rajnath Ram, Adviser (Power & Energy) NITI AAYOG, in his address suggested that for better financial health of DISCOMs, States should take a call whether to treat Discoms as Commercial enterprises or Social enterprises. He opined that Indian companies should become highly cost competitive in the manufacturing sector for the success of Atmanirbhar Bharat for which robust & empowered DISCOMs are essential. He termed bad financial health of DISCOMs, lack of funding support for clean tech projects from FIs, free electricity to residential areas, non revision of electricity tariffs as major problems in the Power sector.

Mr Pradeep Multani, President, PHDCCI, in his Presidential remarks highlighted the significance of new technologies like Smart Grids, Smart Meters and Digitisation and urged DISCOMs to provide clean and cheap electricity to the industry.

Mr Salil Gupta, Chair, Power, RE & AE Committee, PHDCCI, said that the Government of India has been taking significant steps to improve the operational efficiencies and financial viability of DISCOMs. To tide over the liquidity problems of increasing DISCOM payables to Gencos arising out of the outbreak of COVID-19 lockdowns, the Government of India has launched a number of schemes,or instance a Liquidity Infusion scheme under which DISCOMs are already availing benefits under the scheme tied to reforms, the Government has also incentivized the DISCOMs to transform, reform and perform.

Mr R C Agarwala, Co-Chair, Power, RE & AE Committee, PHDCCI, emphasised that India’s RE capacity needed to be increased from 10 GW per year to about 40 GW per year for the next 8 years to reach our RE target. Incremental investments of Rs. 13 Trillion would be needed @ Rs. 4 Cr per MW.

Mr Saurabh Gupta, Co-Chair, Power, RE & AE Committee, PHDCCI, complimented the Government agencies and BSES for launching program of installation of smart meters on mass scale, which was essential for controlling T & D losses and improving the financial health of DISOCMs.

Mr Girishkumar Kadam, Senior Vice President & Co-Group Head – Corporate Ratings, ICRA Limited & Knowledge Partner for the event said that focus on improving operational efficiency, timely issuance of tariff orders with adequate tariff revisions and timely subsidy payouts were necessary to ensure financial sustainability of Discoms along with a strong political will and support from state governments.

Other Eminent Speakers at the Conclave were Mr Vineet Sikka, Senior Executive Vice President, BSES Rajdhani Power Limited, Mr Mukesh Dadhich, Head- Sustainability and Clean Technology and Business development, BSES Yamuna Power Limited, Mr Ravi Seth, Assistant Vice President, India Energy Exchange, Mr.Vikram Gandotra, Head – Utility Sales & Strategy, Siemens Ltd, Mr Ajay Sharma, Head – Smart Metering, BSES Rajdhani Power Limited, Mr Vipin Mishra, General Manager, Capital Power Systems Ltd., Ms Reena Suri, Executive Director, India Smart Grid Forum, Ms.Bindu Madhavi, Director, India Energy Storage Alliance & Mr. N Kishore Narang, Mentor, Principal Design Strategist & Architect The Conclave was attended by 100 representatives from DISCOMs and related industry. Instinct Infra & Power Ltd and Capital Power Systems Ltd were the sponsors. ICRA was the Knowledge Partner and IESA was the Supporting Partner. A Knowledge report prepared by ICRA and PHDCCI was also released.

The Event was sponsored by PHDCCI’s Annual Sponsors – Multani Pharmaceuticals Ltd; Star Wire; PG Industry; Uflex Ltd; DLF Ltd; Continental Carriers Pvt Ltd; Belair Travel & Cargo Pvt Ltd; Radico Khaitan Ltd; Jindal Steel & Power; MMG Group; Paramount Communications; Superior Industries Limited; JK Tyre & Industries Ltd; SMC Investments and Advisors Ltd; Crystal Crop Protection Ltd; Sagar Group of Industries; Samsung India Electronics; Comtech Interio; R E Rogers; AYUSH Herbs Private Ltd; Apeejay Stya Group; DCM Shriram; EaseMyTrip; Blossom Kochhar Beauty Products Pvt Ltd; Oswal Greentech; Trident Group; MV Cotspin Ltd; Synergy Environics Ltd; Ajit Industries Pvt Ltd; P S BEDI & Co.; Indian Farmer &Fertilizers Corporation Ltd; Jindal Steel; Hindware Sanitary; Modern Automobiles; Livit Ltd; Central Coalfields Ltd ; Axa Parenterals; Bhagwati Plastic and Pipes Industries; J K Insurance Brokers Ltd; DD Pharmaceutical Ltd.


Warm Regards,

Media Division

PHD Chamber of Commerce and Industry