• SENSEX
    NIFTY 50
VIDEOS
Energy

Privatisation of discoms attractive but only franchise model restrictive, says Tata Power

Updated : September 17, 2019 09:37 AM IST

As the beleaguered power sector expects reforms from the government, Ramesh Subramanyam, CFO, Tata Power, in an interview with CNBC-TV18 on Monday, said that privatisation of distribution companies (discoms) will be attractive for the industry but just implementing franchise model is restrictive and will not solve the problem.

Talking about the impact of separation of carriage and content in the power sector, he said, “In theory and more or less in practice, it is a perfect thing. I think it will take some time before we see the results... states have to get used to this completely new concept and it is going to be another big change management."

“For any private player, who is interested in distribution, if full-fledged privatisation is not there then the next best option is a franchise. From a management perspective and from an interest perspective, privatisation is clearly preferred because you have the whole ecosystem in control. Therefore you can make large scale changes,” he added.
primo org
Have you signed up for Primo, our daily newsletter?
It has all the stories and data on the market, business, economy and tech that you need to know.
cnbc two logos
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more
Live TV