+
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.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

97 Per Cent Of Rongjeng-Mangsang-Adokgre Road Nears Completion

Deputy Chief Minister in-charge of public works Prestone Tynsong said in Shillong on 26 August that 97 per cent physical progress had been achieved on the ongoing Rongjeng-Mangsang-Adokgre road being constructed under the Non-Lapsable Central Pool of Resources (NLCPR). He noted the project was sanctioned in 2017 and that the stipulated time for completion had been 24 months from issue of the final work order. The deputy chief minister informed the assembly that the government had decided to include the remaining work under a World Bank project. In reply to a query from Rongjeng MLA Jim M Sangm..

Next Story
Infrastructure Transport

First TBM Starts Digging Five Point Three Kilometre Tunnel Under SGNP

The Goregaon-Mulund Link Road (GMLR) Phase three (B) project has reached a key milestone as the first tunnel boring machine (TBM) began excavation of the first of two tunnels beneath the Sanjay Gandhi National Park (SGNP). The machine, named Tulsi, started cutting a five point three kilometre bore that will link Dadasaheb Phalke Chitranagari in Goregaon East with Amar Nagar in Mulund West. Officials issued a statement noting the commencement of tunnelling work under the protected green belt. The twin tunnels are being constructed using mechanised tunnelling methods that aim to limit surface di..

Next Story
Infrastructure Transport

UP Approves Two Expressways And Rs 240 bn Infrastructure Push

The Uttar Pradesh Cabinet approved a series of infrastructure and industrial investment proposals totalling Rs 240 billion (Rs 240 bn), including two major expressway projects, a manufacturing and logistics cluster in Sultanpur and incentives for 11 industrial projects across the state. The decisions, taken at a meeting chaired by Chief Minister Yogi Adityanath, underline the state government’s focus on expanding road connectivity around emerging industrial hubs while attracting manufacturing investment to districts beyond major urban centres. The approvals cover both greenfield expressway c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code