Power ministry asks regulators to revise tariffs by April 1 each year

05 Apr 2021 CW Team

The MoP, in a communication to chairpersons of central and all state power regulatory bodies, has sought compliance of legal provisions in the Electricity Act 2003 and the Tariff Policy 2016, which mandate timely determination of the adequate power tariffs by the electricity commissions.

Discom overdue outstanding to generation companies stand at Rs 124,437 crore, despite the government's liquidity infusion scheme under which Rs 75,000 crore have been disbursed to states.

Outstanding loans of discoms are nearly at Rs 600,000 crore. The average revenue gap of distribution utilities is in the range of 72 paise per unit, and the regulatory assets are at Rs 78,000 crore.

Section 64 of the Electricity Act 2003 provides for the determination of cost-reflective tariff by the appropriate commission within 120 days from receipt of tariff petition. Similarly, Tariff Policy 2016 states that the commissions should initiate tariff determination on a suo-moto basis in case the tariff petitions are not filed in time.

The section mandates commissions to ensure the tariff changes are brought into effect from the beginning of each financial year, and under business as usual, no regulatory assets, deferred tariff hikes - are created. The same has also been provided in an order of the Appellate Tribunal for Electricity passed in November 2011.

Furthermore, the liquidity infusion scheme of Rs 130,000 crore special loans to distribution companies, the government is soon likely to bring out a Rs 300,000 crore reforms-linked distribution reforms scheme which will disburse amount only when the discoms achieve targeted milestones.

The government is also working on amendments in the Electricity Act, 2003 for delicensing power distribution segment to introduce competition in the power segment.

Image Source

Also read: ICRA maintains negative outlook on power distribution sector

The government has asked power regulatory commissions to issue tariff orders of all distribution licensees before April 1 of the tariff year and report compliance to the Ministry of Power (MoP) by May 31 every year. The MoP, in a communication to chairpersons of central and all state power regulatory bodies, has sought compliance of legal provisions in the Electricity Act 2003 and the Tariff Policy 2016, which mandate timely determination of the adequate power tariffs by the electricity commissions. Discom overdue outstanding to generation companies stand at Rs 124,437 crore, despite the government's liquidity infusion scheme under which Rs 75,000 crore have been disbursed to states. Outstanding loans of discoms are nearly at Rs 600,000 crore. The average revenue gap of distribution utilities is in the range of 72 paise per unit, and the regulatory assets are at Rs 78,000 crore. Section 64 of the Electricity Act 2003 provides for the determination of cost-reflective tariff by the appropriate commission within 120 days from receipt of tariff petition. Similarly, Tariff Policy 2016 states that the commissions should initiate tariff determination on a suo-moto basis in case the tariff petitions are not filed in time. The section mandates commissions to ensure the tariff changes are brought into effect from the beginning of each financial year, and under business as usual, no regulatory assets, deferred tariff hikes - are created. The same has also been provided in an order of the Appellate Tribunal for Electricity passed in November 2011. Furthermore, the liquidity infusion scheme of Rs 130,000 crore special loans to distribution companies, the government is soon likely to bring out a Rs 300,000 crore reforms-linked distribution reforms scheme which will disburse amount only when the discoms achieve targeted milestones. The government is also working on amendments in the Electricity Act, 2003 for delicensing power distribution segment to introduce competition in the power segment. Image Source Also read: ICRA maintains negative outlook on power distribution sector

Infrastructure Urban

10 Mar 2026

ABB to Invest Rs 6.25 Billion to Expand India Manufacturing

ABB recently announced plans to invest approximately Rs 6.25 billion ($75 million) in India during 2026 to expand its manufacturing footprint and research and development capabilities. The investment follows more than $35 million spent in 2025 and reflects the company’s continued focus on strengthening its ‘local-for-local’ strategy in the country.The investment will support ABB’s Electrification, Motion and Automation businesses and expand manufacturing capacity for infrastructure sectors such as renewable energy, metro rail, data centres and industrial applications. Approximately 300..

Equipment

10 Mar 2026

Six WOLFF Cranes Handle 60,000 m³ Concrete for German Hospital

Six WOLFF tower cranes are playing a key role in constructing a new hospital complex in Memmingen, Germany, supporting large-scale material handling for the project. The facility is being built on a 7.7-hectare site and will feature six floors, around 480 beds and a gross floor area exceeding 75,000 sq m.Building shell works began recently in February 2025. One WOLFF 6531.12 Cross crane supported early site preparation before being dismantled in autumn 2025, while five remaining cranes continue operations. Over an average deployment period of 16 months, the cranes are expected to move approxim..

Equipment

10 Mar 2026

REC Funds Rs 115.6 Million CSR Support for Bihar Eye Hospital

REC recently committed Rs 115.6 million under its Corporate Social Responsibility (CSR) programme for the procurement of clinical and non-clinical equipment at Sankara Eye Hospital in Saharsa, Bihar. The initiative aims to strengthen healthcare infrastructure and improve access to specialised eye care services in the region.A Memorandum of Agreement (MoA) was recently signed between Pradeep Fellows, Executive Director (CSR), REC Limited, and Wg Cdr V. Shankar (Retd), Trustee and Executive Director of Sankara Eye Hospital, at the REC office in the SCOPE Complex, New Delhi.The support is expecte..