Revitalizing India's Power Distribution: Tackling Discom Challenges

Union Minister Shripad Yesso Naik chaired a pivotal meeting addressing power distribution challenges in India. The focus was on improving the financial viability of discoms, which are crucial in the electricity supply chain. Strategies discussed include reducing AT&C losses and closing the ACS-ARR gap.


Devdiscourse News Desk | New Delhi | Updated: 30-01-2025 22:33 IST | Created: 30-01-2025 22:33 IST
Revitalizing India's Power Distribution: Tackling Discom Challenges
Union Minister
  • Country:
  • India

Union Minister Shripad Yesso Naik has taken significant strides towards bolstering India's power distribution sector by leading a critical session with the Group of Ministers. The assembly, as confirmed by official sources, concentrated on pivotal issues challenging the financial stability of distribution utilities (discoms).

During the meeting, attended by senior central officials and energy ministers from across several states, Naik underscored the crucial role of discoms. He highlighted the necessity to enhance efficiency in billing and collection systems, alongside the integration of advanced technologies, to mitigate the above-average Aggregate Technical & Commercial (AT&C) losses plaguing the sector.

Naik also expressed concern over the growing gap between the average cost of supply (ACS) and the average revenue realized (ARR), emphasizing the need for strategic interventions. With inputs from key state-held positions, the Group of Ministers aims to assess the debt situation, ensure productive borrowing, and foster a framework for fiscal discipline to help avert potential debt pitfalls.

(With inputs from agencies.)

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