Centre Pledges Full Support to States for Power Sector Reforms

The Centre has assured states of complete support in implementing major reforms in the power sector to ensure energy security and economic growth. Power Minister Manohar Lal highlighted India's installed capacity exceeding 520 GW and progress in smart metering and reducing shortages. The ministerial meeting also saw the release of DISCOM service and ranking reports, showing an overall improvement in consumer service delivery. Officials emphasized coordinated action to meet rising demand through non-fossil sources and reliable supply.

Key Points: Centre Backs States on Power Reforms, Highlights 520 GW Capacity

  • Centre assures full support for state-led power reforms
  • Installed capacity crosses 520 GW with smart meter rollout
  • DISCOM service ratings show overall improvement
  • Focus on clean energy and nuclear power for security
  • Draft policy aims for Viksit Bharat 2047 vision
3 min read

Centre assures states of full backing for power sector reforms, says Power Minister Manohar Lal

Power Minister assures state support for reforms, smart meters, and clean energy shift. DISCOM ratings show service improvement. Read key updates.

"The meeting focuses on ensuring energy security, and the Centre shall provide full support to the States for implementing necessary reforms - Manohar Lal"

New Delhi, March 20

The Centre today assured states of full support in carrying out major reforms in the power sector, an official release quoted Power Minister Manohar Lal as saying in a ministerial meeting during the second day of the Bharat Electricity Summit 2026.

"The meeting focuses on ensuring energy security, and the Centre shall provide full support to the States for implementing necessary reforms," Lal said while chairing the National Power Ministerial Meet.

Highlighting the sector's importance for economic growth, Manohar Lal said India's installed power capacity has crossed 520 GW, alongside improvements in DISCOM performance, large-scale smart meter rollout, and a reduction in power shortages.

He called for closer coordination between the Centre and states to ensure efficient and affordable power generation, transmission and distribution, while also stressing the need to increase per capita energy consumption.

Amid global uncertainties, the minister underlined the need to strengthen energy security and accelerate the shift towards cleaner energy sources. He also pointed to nuclear power as a viable clean energy option and described the proposed SHANTI Act as a significant step forward.

Shripad Naik highlighted the role of technology and artificial intelligence in transforming the sector, citing smart metering as a key example. He noted that nearly half of India's installed capacity now comes from non-fossil fuel sources, reflecting progress in the energy transition.

Naik also referred to the draft National Electricity Policy, which outlines strategies to achieve the vision of Viksit Bharat by 2047, focusing on sustainability and efficiency.

The meeting also saw the release of two key reports for FY 2024-25 -- the Consumer Service Ratings of DISCOMs (CSRD) and the Distributing Utilities Ranking (DUR) report.

The CSRD report evaluates DISCOMs on consumer service parameters such as accurate billing, timely grievance redressal and transparent tariff-setting. Based on the assessment, utilities are graded from A+ to D.

Out of 66 DISCOMs evaluated, 6 were rated A+, 21 received A, and 27 were graded B+, indicating an overall improvement in service delivery, with fewer utilities falling in lower categories.

The DUR report provides a broader assessment of 66 utilities, covering financial sustainability, operational efficiency, institutional capability and service delivery, aimed at strengthening the power distribution ecosystem.

Officials stressed the need for coordinated action to meet rising electricity demand, particularly through non-fossil energy sources, while ensuring a reliable and affordable supply across the country.

The summit serves as a key platform for aligning Centre-state efforts as India works towards long-term energy security and development goals.

The meeting was co-chaired by Minister of State for Power and New & Renewable Energy Shripad Naik and attended by senior officials, including Power Secretary Pankaj Agarwal, MNRE Secretary Santosh Kumar Sarangi, and energy ministers and officials from states and Union Territories.

- ANI

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Reader Comments

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Sarah B
As someone working in renewable energy, the emphasis on non-fossil fuels crossing 50% of capacity is the real headline. The SHANTI Act for nuclear and the push for AI in the grid are forward-looking. Coordination between states is key—solar potential in Rajasthan needs to power factories in Tamil Nadu efficiently.
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Rohit P
Full support is announced every few years, but will states actually implement reforms? Many DISCOMs are still deep in debt. Affordable power is a dream for middle-class families when tariffs keep rising. The ranking report is a good step, but penalties for poor performance are needed, not just grades.
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Priya S
Increasing per capita energy consumption is crucial for development, but it must be clean. Glad nuclear is being discussed—it's reliable and low-carbon. Hope the Viksit Bharat 2047 vision includes robust power for every village. My hometown still faces 6-hour cuts in summer.
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Aman W
The focus on grievance redressal and transparent tariffs in the CSRD report is most welcome. For too long, consumers had no recourse for faulty bills. Now if only the website and helpline numbers actually worked properly... The intent is good, execution needs work.
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Kavya N
520 GW is an impressive number! 🎉 But the real test is 24x7 reliable power. Smart meters are a double-edged sword—they bring transparency but also higher bills if you're not careful. Hope the reforms also look at subsidizing power for farmers and low-income households sustainably.

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