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

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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.
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