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Power Minister: Strong, Profitable Discoms Key to Better Consumer Services

Power Minister Manohar Lal emphasized that a strong and growing economy requires a thriving power sector, making it crucial for Distribution Companies (Discoms) to be financially robust to improve consumer services. He urged State Electricity Regulatory Commissions to implement cost-reflective tariffs while ensuring targeted subsidies for needy consumers. The minister's comments came as the power distribution sector reported a historic net profit for the first time in years, marking a sharp reversal from decades of heavy losses. This turnaround is attributed to several government reforms aimed at improving the financial health and operational efficiency of distribution utilities.

Key Points: Power Minister Stresses Need for Financially Strong Discoms

  • Discoms must be financially strong for better services
  • Move towards cost-reflective tariffs with targeted subsidies
  • Distribution sector posts first net profit in years
  • Government reforms credited for financial turnaround
2 min read

Discoms need to be financially strong for improved services: Power Minister

Power Minister Manohar Lal highlights the crucial link between financially robust Discoms and improved consumer services, as the sector posts its first net profit in years.

"strong Discoms means improved services and greater sensitivity towards consumers - Power Minister Manohar Lal"

New Delhi, Jan 21

The power sector in coming times is going to become enormous and it is crucial for Discoms to be strong, prosperous, and financially empowered, Power Minister Manohar Lal said on Wednesday, adding that strong Discoms means improved services and greater sensitivity towards consumers.

The growing economy requires a thriving power sector far more than we can imagine today, he said while delivering the inaugural address at 'Electricity Distribution Industry Conference 'EDICON: 2026' here.

Lal urged the State Electricity Regulatory Commissions to move towards cost-reflective tariffs, while also ensuring targeted subsidies for needy consumers in accordance with the provisions of the Electricity Act.

The minister also unveiled the first publication of the annual report of te All India Discoms Association (AIDA), which contains an outlook of the distribution sector, including present efforts from distribution companies to improve the reliability of supply and operational efficiency, the challenges being faced by the distribution companies, and a brief summary of the various initiatives taken by Ministry of Power and CERC to address these challenges.

Lal also awarded 12 Discoms across six different categories. These included Discoms from Gujarat, Odisha, Assam, Bihar, UP, Maharashtra, Rajasthan, Tamil Nadu and West Bengal.

Meanwhile, power distribution sector posted a rare and significant turnaround, with electricity distribution companies and power departments together reporting a net profit for the first time in years. In FY2024-25, distribution utilities recorded a collective profit after tax (PAT) of Rs 2,701 crore -- marking a sharp reversal from years of heavy losses.

This positive performance comes after a loss of Rs 25,553 crore in FY 2023-24 and a much deeper loss of Rs 67,962 crore in FY 2013-14, the ministry data showed.

Since the unbundling and corporatisation of State Electricity Boards, distribution utilities had consistently remained in the red, making the latest figures a major milestone for the sector. Power Minister described the development as the beginning of a new chapter for India's power distribution system. Over the past few years, the government has introduced several reforms aimed at improving the financial health and efficiency of distribution utilities.

- IANS

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Reader Comments

P
Priya S
The minister talks about "cost-reflective tariffs" and I get worried. Does this mean another electricity bill hike for the common man? While subsidies for the needy are good, the middle class is already struggling. The focus should be on reducing theft and improving efficiency first.
A
Aman W
Good to see Discoms from states like Assam and Bihar getting awards. Often, the focus is only on Gujarat or Maharashtra. Development should be inclusive across all states. Hope this recognition motivates others to improve their services in the eastern and northern regions.
S
Sarah B
Turning a loss of over 25,000 crore into a profit of 2,700 crore in a year is impressive data. It shows the reform measures are working. A financially stable power distribution network is fundamental for attracting manufacturing and creating jobs. This is good for the economy.
K
Karthik V
Profit is good, but will it translate to better service on the ground? In my city, the billing is still erratic and the customer service helpline is always busy. Financial strength should lead to consumer-friendly practices. Hope they invest in tech for smoother bill payments and grievance redressal.
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Nisha Z
As a small business owner, reliable power is everything. Even an hour of outage means lost productivity. If this turnaround means more stable power for MSMEs, it's the best news. The government should keep pushing for 24/7 quality power supply. Our growth depends on it.

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