Power distribution compes (DISCOMS) in Union Territories will be privatised in line with the new tariff policies, Finance Minister Nirmala Sitharaman said on Saturday.
There has been sub-optimal performance of power, distribution and supply.
"However, the new initiatives will lead to better service to consumers with DISCOMs ensuring adequate power. This will enable to strengthen industries and bring in efficiency in the entire power sector," she said.
The inefficiencies of DISCOMS will not burden consumers. The will be a standard of service and penalties for DISCOMs. This will also enable stability in the power sector, said Sitharaman, while addressing a press conference here along with Minister of State for Finance Anurag Thakur.
The Finance Minister also called for boosting private sector investment in social infrastructure through a revamped Viability Gap Funding Scheme of Rs 8,100 crore.
"The government will enhance the quantum of viability gap funding up to 30 per cent each of total project cost as VGF by the Centre and state or statutory bodies," she said, adding the projects will be proposed by the Central ministries and state governments.
( With inputs from ANI )