Union Minister Chairs 4th GoM Meet on Power Utility Reforms

23 Apr 2025 CW Team

Union Minister of State for Power and New & Renewable Energy, Shri Shripad Yesso Naik, chaired the fourth meeting of the Group of Ministers (GoM) formed to address the financial and operational viability of electricity distribution utilities (DISCOMs). The meeting was held in Vijayawada on April 22, 2025, with energy ministers and senior officials from member states and central institutions in attendance.

The minister underscored the urgent need for regulatory reforms and cost-reflective tariffs, along with collaborative efforts between state governments and regulatory commissions to ensure the sector’s sustainability. He also highlighted progress made in previous meetings and called for actionable steps to improve utility efficiency.

Representatives from the All India DISCOM Association (AIDA), attending as special invitees, advocated for a comprehensive review of the existing tariff policy to align it with current sector challenges. A key concern raised was the mismatch between utilities’ revenue increases and their rising debt levels.

Joint Secretary (Distribution), Ministry of Power, presented an overview of the current financial status of DISCOMs, highlighting significant regulatory disallowances, subsidy delays, and outstanding dues from government departments.

Key discussions focused on reducing power purchase costs, expediting smart metering projects under the Revamped Distribution Sector Scheme, and leveraging Artificial Intelligence and data analytics for better demand forecasting and power purchase optimisation.

States also requested continued GoI support for reforms including distribution franchise models, privatization, and the introduction of parallel licensees. The GoM reaffirmed its commitment to ongoing dialogue and proposed rotational brainstorming sessions among states to tackle broader sectoral issues

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