Group of Ministers reviewed various matters related to power sector; MoS Shripad Yesso Naik chaired meeting

ANI March 30, 2025 262 views

Union MoS Shripad Naik chaired the third GoM meeting with state energy ministers to address DISCOM financial stress. Key discussions included debt restructuring, AI adoption, and cost-reflective tariffs to improve viability. States like UP, Maharashtra, and Andhra Pradesh shared their DISCOM turnaround strategies. The next meeting will be held in Andhra Pradesh to finalize an action plan.

"States must show political will to make power sector viable" – Shripad Yesso Naik
New Delhi, March 30: Minister of State for Power and New and Renewable Energy Shripad Yesso Naik has chaired the 3rd meeting of Group of Ministers constituted for addressing issues related to viability of distribution utilities in the country. The meeting, held in Lucknow, was attended by energy ministers of Uttar Pradesh, Andhra Pradesh, Madhya Pradesh, and Maharashtra, besides senior officials from central government, state governments, state power utilities, Power Finance Corporation (PFC) Ltd and REC Ltd. In the meeting, the Union minister highlighted about the discussions held during the first two meetings of the GoM and the collective efforts required from the member States for improvement of power distribution sector.

Key Points

1

GoM reviews DISCOM debt restructuring & subsidy reduction

2

States propose measures for financial turnaround

3

AI & digital solutions pushed for efficiency

4

Next meeting set in Andhra Pradesh

He highlighted the need for designing a mechanism for financial restructuring of liabilities of distribution utilities, lowering interest burden on utilities, development of storage solutions, facilitating daytime power supply for agriculture to lower the overall power purchase costs and reduce subsidy burdens. The Minister also highlighted the need for implementing AI and digital innovations and the need for ensuring cost-reflective tariffs for the financial viability of the power sector. He added that implementing these measures would help utilities improve financial sustainability.

Joint Secretary (Distribution), Ministry of Power, GoI made a presentation highlighting key areas of intervention identified during first two meetings of the GoM and proposed measures to be taken by the stakeholders (Central Govt., State Govts. and Regulatory Commissions) to address the viability concern for deliberation.

TATA power distribution, Odisha, as a special invitee, shared the best practices adopted and their journey toward making their DISCOMs profitable.

The member States actively participated in the meeting and presented the overview of State distribution companies (DISCOMs). They gave valuable suggestions for improving the financial condition of DISCOMs. States of Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Maharashtra and Tamil Nadu made presentations on the subject.

The contours of the Action plan identifying the ways to reduce the outstanding debts and losses of the distribution utilities and the means to bring them into profits were discussed in detail.

The Group of Ministers reiterated its commitment and expressed resolve to take necessary measures for improving the financial viability of DISCOMs.

In his closing remarks, the Hon'ble Union Minister of State emphasized on the need for States to demonstrate greater political will and determination to make the power sector viable and urged the member States to work upon the ideas that have emerged during the meeting. It was recommended to invite All India DISCOM Association (AIDA) to the next GoM meeting for their suggestions.

It was also unanimously decided to have 4th meeting of the GoM in Andhra Pradesh in April.

Tags:
Shripad Naik Power sector reforms DISCOM viability GoM meeting State energy ministers
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