New Delhi, July 25 -- The Consultative Committee of the Power Ministry deliberated a proposed framework to allow multiple power distribution companies (discoms) to supply electricity through existing distribution networks across states, an official statement said on Friday.

The current legal framework permits more than one distribution licensee to operate in the same area, but requires each licensee to build its own distribution network.

According to the Ministry, this results in duplication of poles, lines and substations, raises capital expenditure, discourages fresh investment, and leads to inefficient utilisation of resources.

The Proposal

"The proposed framework seeking to enable competition in electricity supply without requirin...