India, April 8 -- State-owned power distribution company MSEDCL will be restructured to create a new company to serve its agricultural consumers, a move that will benefit the MSEDCL as well as its industrial and commercial users. The demerger, approved by the state government at its cabinet meeting on Tuesday, will also see the parent company list on the stock exchange and issue bonds worth Rs.32,679 crore.

This is a milestone for power distribution in the state, and for the Maharashtra State Electricity Distribution Company Limited (MSEDCL), which is reeling under debt due to the supply of power to the agricultural sector.

Hiving off agricultural consumers to a new company will also hugely benefit MSEDCL's industrial and commercial use...