NTPC, PGCIL ink MoU to enter national distribution business

NTPC, India’s largest energy conglomerate, and PGCIL, India’s biggest electricity transmission utility, have signed an agreement for setting up National Electricity Distribution Company Ltd (NEDCL) through a joint venture company on 50:50 equity basis.

The main aim of the initiative undertaken by the state-owned behemoths is to enter electricity distribution business on a pan-India basis. The development comes at a time when cumulative financial losses of state-owned power distribution companies grew 44% to Rs 21,658 crore in FY19, reversing the declining trend since the UDAY scheme was launched in November 2015.