By Union Minister
Copyright knnindia
New Delhi, Sep 16 (KNN) The fifth meeting of the Group of Ministers (GoM) constituted to address the financial viability of electricity distribution utilities was held in New Delhi.
The discussions focused on a proposed reform-based debt restructuring scheme for discoms, cost-reflective tariff orders, and the broader role of regulatory commissions in ensuring sector sustainability.
The meeting was chaired by Union Minister of Power and Housing & Urban Affairs, Manohar Lal, and attended by Union Minister of State for Power and New & Renewable Energy Shripad Yesso Naik, along with energy ministers from Maharashtra, Uttar Pradesh, Tamil Nadu, Rajasthan, Andhra Pradesh, and Madhya Pradesh.
Senior officials from the Centre, state governments, the Central Electricity Authority, Power Finance Corporation, and state utilities also participated.
Opening the discussions, the Power Secretary stressed the need for structural reforms to restore financial health in the sector while ensuring that improvements are irreversible and debt traps are avoided.
The Minister of State emphasised regulatory reforms and stronger cooperation between Central and State Governments to reduce liabilities and enhance efficiency.
The union Power minister underlined the importance of operational and financial stability of discoms in delivering quality electricity supply.
He urged states to expedite prepaid smart meter installations in government establishments and reaffirmed the commitment to “Power for All, at All Times” in an efficient and sustainable manner.
Key issues identified included high cross-subsidies, persistent financial losses, and the declining attractiveness of the sector for private investment.
The deliberations highlighted reforms such as timely tariff revisions, clearance of government dues, accelerated smart metering, and increased use of data analytics for demand forecasting and power purchase optimisation.
It was also noted that state governments ultimately bear responsibility for discom debt. The Electricity (Amendment) Bill, under consideration, was presented as a potential enabler to improve financial viability, strengthen regulation, and support India’s energy transition.
The GoM reiterated its commitment to finalising a comprehensive debt restructuring plan and advancing reforms for the long-term sustainability of the power distribution sector.
