Electricity Distribution In Union Territories To Be Privatised: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Saturday said electricity distribution companies in Union Territories (UTs) will be privatised.

A tariff policy that does not burden consumers with distribution companies’ inefficiencies will be guaranteed, she said while presenting the fourth tranche of economic stimulus package.

Meanwhile, Sitharaman also announced commercial mining of coal by the private sector, ending government monopoly on the sector.

In her fourth tranche of the economic package, she said commercial mining will be done on revenue sharing mechanism instead of the regime of fixed rupee/tonne.

Nearly 50 blocks will be offered for bidding, she said.

This is being done to reduce import of substitutable coal and increase self-reliance in coal production.

Also, the government will invest Rs 50,000 crore for building evacuation infrastructure.

(with inputs from PTI)