Increased competition: It will provide the biggest platform for investors to get into Indian utility business, which has 250 million customers. Thus will usher competition for better delivery of services.
Benefits for consumers: The move will provide the consumers reliable supply of electricity at affordable rates.
Success of UDAY scheme: To ensure UDAY related targets are achieved on the ground, segregation of content and wires along with competition in content business is necessary.
Reduction of losses: The said move will reduce the losses of the state discoms, as the electricity charges will no longer be determined on political lines.
Long awaited proposal: Segregation of the network maintenance and electricity distribution businesses (separation of content and carriage) has been proposed for a long time by various committees for reforming the electricity sector.
