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The country's power distribution utilities (DISCOMs and power departments) have collectively recorded a positive Profit After Tax (PAT) of Rs 2,701 crore in the year 2024-25, marking a significant turning point for the sector, Manohar Lal, Union Minister of Power, said.
The distribution utilities as a whole have been reporting PAT losses for the past several years since the unbundling and corporatisation of State Electricity Boards. As per a statement from the Ministry of Power, the positive PAT of Rs 2,701 crore returned in 2024-25 compares to a loss of Rs 25,553 crore in 2023-24 and a loss of Rs 67,962 crore in 2013-14. Minister Manohar Lal said this marks a new chapter for the distribution sector and is the result of several steps taken to address its concerns. The Minister said this achievement was possible due to the leadership and vision of Prime Minister Narendra Modi captured in his words that, "India is driving not only its growth but also the growth of the world, with the energy sector playing a significant role in this." Manohar Lal said the government is committed to the required reforms in the sector so that the power sector can support our growing economy and play its part in the journey towards Viksit Bharat. Some of the transformative initiatives in the distribution sector include; Revamped Distribution Sector Scheme (RDSS): Enhancing financial viability through infrastructure modernization and accelerated smart metering; Additional Prudential Norms: Linking access to finance for Power sector Utilities to achievement against performance benchmarks to promote fiscal and operational discipline; Amendments to Electricity Rules: Enforcing timely cost adjustments, prudent tariff structures, and transparent subsidy accounting to ensure full cost recovery; Electricity Distribution (Accounts and Additional Disclosure) Rules, 2025: Introducing uniform accounting and enhanced transparency across Distribution utilities for improved financial governance; Late Payment Surcharge Rules: Enforcing legal contracts through timely payments in the power sector thereby supporting investment in new RE projects; and Incentivizing states to implement critical power sector reforms, with borrowing limits tied to performance metrics as part of Additional Borrowing Scheme. The result of these reforms is evident not just in the positive PAT posted by the Distribution Utilities after so many years, but also in other performance indicators. The Aggregate Technical and Commercial (AT&C) losses have reduced over the years, signalling a transformation. The AT&C losses have reduced from 22.62 per cent in 2013-14 to 15.04 per cent in 2024-25. The Ministry of Power has put in concerted efforts over the past decade to improve the performance of distribution utilities across the country. In addition to the different policy initiatives, extensive engagements with states and UTs have emphasised reforms in the distribution sector. These include discussions led by Manohar Lal, Union Power Minister, during the Regional Conferences of Energy Ministers of States/UTs in 2025 - Gangtok (Northeastern Region), Mumbai (Western Region), Bengaluru (Southern Region), Chandigarh (Northern Region) and Patna (Eastern Region). Regular interactions and reviews have played an important role in DISCOMs accomplishing this remarkable turnaround. (ANI)
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