Market Report - Eninrac Store | Feeder Segregation Post India Budget 2021: Tackling the Cross Subsidy Challenge in India | Store

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Report Summary Well, it might sound in stark contrast to what the industry perceives but for a country like India debunking the feeder segregation can augur positively and aid resolve the imperial issues of cross-subsidy burden on the power distribution companies.

Enhanced emphasis upon feeder segregation post India Budget 2021 in India, but will it resolve the cross-subsidy issue?

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Brief Overview
Well, it might sound in stark contrast to what the industry perceives but for a country like India debunking the feeder segregation can augur positively and aid resolve the imperial issues of cross-subsidy burden on the power distribution companies. Feeder segregation is touted at large the solution which shall put to rest the legacy issue of cross-subsidies burden builds up on the power distribution utilities which are yet to turn their (applicable for most of the states in India) operations profitable. As a matter of fact, feeder segregation shall require double the numbers of rural feeders with substation bays, circuit breakers, distribution transformers, switch gears etc. and coupled with a LT network to serve a similar count of consumers. This leads to duplication of the whole rural electricity distribution system which shall involve a surge in capex as well as a spurt in O&M costs.
On Point Query
ON – POINT QUERY: The industry in unison celebrates “feeder segregation” as a touted solution to cross-subsidy woes of the discoms, but is it positioned towards addressing the root cause?
What's included
To have an easy grasp lets understand the same through a case of a consumer who needs an electrical connection for any commercial set up bet it a shop, workshop or garage etc. or any residential set up in vicinity of an agricultural feeder. For such type of a consumer a separate non-agricultural HT feeder, transformer and LT line will have to be put in place to maintain the “feeder segregation”. This shall invite the extra cost for discoms unless they reserve an “exception” to such a consumer which is inevitable sighting the extra pressure which shall augur from them with time.

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Insights

Enhanced emphasis upon feeder segregation post India Budget 2021 in India, but will it resolve the cross-subsidy issue?

Enhanced emphasis upon feeder segregation post India Budget 2021 in India, but will it resolve the cross-subsidy issue?