(Bloomberg) -- Tata Power Co. Ltd. expects more Indian states to open up their electricity distribution businesses to private participation in the coming months and the company is geared up to bid for the projects.

“All states are willing to do it,” Chief Executive Officer Praveer Sinha said. Tapping private operators will enable distribution companies to invest in new technology and revamp networks, with knock-on benefits for consumers. “It’s a win-win for everyone.”

Most power distribution utilities are controlled by provinces and traditionally have made losses, plagued by thefts and leakages through aged networks. That has curtailed their ability to provide enough electricity to meet demand and caused blackouts during high-demand periods like the summer. Keeping the utilities financially healthy is key to Prime Minister Narendra Modi’s goal to establish energy security and turn the country into a manufacturing powerhouse.

The retailers posted a combined loss of 572 billion rupees ($6.9 billion) for the year through March 2023, more than double the losses a year earlier, according to the latest data compiled by government lender Power Finance Corp. Ltd.

The federal government is discussing a plan to amend legislation to bring private competition into the power distribution sector and a 3 trillion rupee program is under way to reduce losses and improve efficiency.   

Tata Power, one of India’s largest non-state power generation companies, runs distribution operations in locations including Delhi, Mumbai and the state of Odisha, its latest acquisition.  

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