SBD: A useful first step in power reforms

Power ministry is setting the stage for much-needed investments and efficiencies into the sector through privatisation of discoms - with a framework in the form of a draft Standard Bidding Document

Reforming the structure, operations and finances of electricity distribution companies (discoms) remains the great unfinished business of the power sector. 

The Ministry of Power is finally attempting to bite the bullet — setting the stage for the much-needed investments and efficiencies into the sector through privatisation of discoms — with a framework in the form of a draft Standard Bidding Document (SBD). The endeavor is to have the private sector step in and take over these hugely challenged state utilities. As the subject is in the domain of state governments and state regulators, the SBD will not be binding; the states