Centre suggests states to list power firms
POWER & RENEWABLE ENERGY

Centre suggests states to list power firms

Power Minister Manohar Lal urged states and union territories to consider listing their power generation, transmission, and distribution companies on stock exchanges to attract investment and improve operational efficiency. Addressing the media, after a conference of power ministers, Lal highlighted the need for increased capital inflows to meet India’s rising power demand, which has placed added strain on the sector. “With the growing power demand, there is a growing need for investment in the sector and improving operational efficiencies. States may identify and take up utilities for listing,” he said. Haryana and Gujarat have shown interest to pursue listing initiatives, a move expected to enhance transparency and strengthen the financial health of the sector. The Centre has pushed states to tackle Aggregate Technical and Commercial (AT&C) losses, which hit 17.6% in FY24, up from 15.4% in the previous fiscal year. The government suggested states calculate technical and commercial losses separately to allow targeted solutions. "States should look into addressing losses with dedicated methodologies," Lal stated, urging a structured approach to cut inefficiencies. Promoting nuclear power projects also emerged as a priority during the conference. The Centre encouraged states to identify suitable locations, with 18 sites already shortlisted for potential nuclear plants. “States must prioritize nuclear power and secure adequate sites for new projects,” Lal noted, underlining nuclear energy as a sustainable option for India's future energy needs. To boost smart meter installation, the government suggested offering concessional tariffs as an incentive. This aligns with the broader goal to improve grid management and reduce power theft, a pressing issue that impacts the financial health of the sector. Highlighting the fiscal challenges faced by power distribution companies (discoms), the minister shared alarming figures: the outstanding debt of discoms stands at Rs 6.84 lakh crore, while accumulated losses have reached Rs 6.46 trillion. Lal called on states to prioritize reform measures to reduce this burden and improve financial sustainability.

Power Minister Manohar Lal urged states and union territories to consider listing their power generation, transmission, and distribution companies on stock exchanges to attract investment and improve operational efficiency. Addressing the media, after a conference of power ministers, Lal highlighted the need for increased capital inflows to meet India’s rising power demand, which has placed added strain on the sector. “With the growing power demand, there is a growing need for investment in the sector and improving operational efficiencies. States may identify and take up utilities for listing,” he said. Haryana and Gujarat have shown interest to pursue listing initiatives, a move expected to enhance transparency and strengthen the financial health of the sector. The Centre has pushed states to tackle Aggregate Technical and Commercial (AT&C) losses, which hit 17.6% in FY24, up from 15.4% in the previous fiscal year. The government suggested states calculate technical and commercial losses separately to allow targeted solutions. States should look into addressing losses with dedicated methodologies, Lal stated, urging a structured approach to cut inefficiencies. Promoting nuclear power projects also emerged as a priority during the conference. The Centre encouraged states to identify suitable locations, with 18 sites already shortlisted for potential nuclear plants. “States must prioritize nuclear power and secure adequate sites for new projects,” Lal noted, underlining nuclear energy as a sustainable option for India's future energy needs. To boost smart meter installation, the government suggested offering concessional tariffs as an incentive. This aligns with the broader goal to improve grid management and reduce power theft, a pressing issue that impacts the financial health of the sector. Highlighting the fiscal challenges faced by power distribution companies (discoms), the minister shared alarming figures: the outstanding debt of discoms stands at Rs 6.84 lakh crore, while accumulated losses have reached Rs 6.46 trillion. Lal called on states to prioritize reform measures to reduce this burden and improve financial sustainability.

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