India's state-run power companies NTPC Ltd and Power Grid Corp. of India Ltd (PGCIL) are to set up a pan-Indian power distribution company, the National Electricity Distribution Company (NEDC), in an equal-share joint venture, reports Live Mint.

The new public company will cater to the aggregating electricity demand and it many also take over weak electricity distribution utilities.

The company is being set up at a time when the state-owned distribution companies are struggling with their finances due to losses and loans. In this situation, a national electricity distribution company should be able to procure electricity at competitive rates and help address the issue of stressed assets in power generation.

The details of the deal are still being discussed.

Source: Live Mint