The move is inspired by government’s measures including the proposed separation of the wire and electricity supply business.
January 9, 2018
Attracted by proposed power sector reforms and India’s potential, Italy’s Enel Group is exploring the possibility of entering India’s electricity distribution business, according to a media report. The interest from the European utility in India’s electricity distribution sector comes against the backdrop of the government’s measures including the proposed separation of the wire and electricity supply business.
To tide over the debts of around Rs 4.3 trillion, the Indian government launched the Ujwal Discom Assurance Yojana (UDAY) in November 2015 to improve operational and bill collection efficiency of power discoms. Also, the government plans to leverage the recently launched Rs 16,320 crore Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) for universal electricity access.
Listed on the Milan stock exchange, Enel is present in 37 countries and has 2.1 million km of electricity and gas network. With 84 gigawatts (GW) of installed capacity, the utility generated €70.6 billion revenue in 2016. Italy’s largest utility has been present in India’s renewable energy sector since 2015 when Enel Green Power (EGP) acquired a majority stake in Indian renewable energy company BLP Energy for about €30 million. Enel had articulated its strategy at that time.
