Union Minister of Power and Housing & Urban Affairs, Shri Manohar Lal, chaired the 5th meeting of the Group of Ministers (GoM) constituted to address issues related to the viability of electricity distribution utilities in New Delhi today.
The meeting was attended by Union Minister of State for Power and New & Renewable Energy, Shri Shripad Yesso Naik, along with energy ministers from Maharashtra, Uttar Pradesh, Tamil Nadu, Rajasthan, Andhra Pradesh and Madhya Pradesh. Senior officials from the Ministry of Power, Central Electricity Authority (CEA), State Governments, State Power Utilities, and Power Finance Corporation Ltd. were also present.
In his opening remarks, Secretary (Power), Government of India, stressed the urgent need for reforms to restore the financial viability of distribution utilities and ensure that improvements remain irreversible, preventing a recurrence of debt traps.
Union Minister of State welcomed the participants and emphasised the importance of regulatory reforms. He highlighted the proposed interventions discussed in earlier meetings that could help reduce the mounting debt of utilities and improve their efficiency in delivering reliable power supply to consumers.
Chairing the meeting, Union Minister Shri Manohar Lal underlined the critical role of operational and financial health of distribution utilities in guaranteeing quality power to citizens. He called for collaborative efforts among the Centre, States, and Regulators to implement reforms, stressing early installation of prepaid smart meters in government establishments. He urged all States to reaffirm their commitment to “Power for All, at All Times” in an efficient, sustainable, and cost-effective manner.
Presentations were made by Joint Secretary (Distribution) and Additional Secretary, Ministry of Power. They highlighted issues such as high cross-subsidies, distribution losses, and the declining attractiveness of the sector for private investment. Key proposed measures included ensuring cost-reflective tariffs, encouraging mediation mechanisms to avoid prolonged litigation, and recognising distribution utility debt as the liability of State Governments. The draft Electricity (Amendment) Bill was also discussed, aimed at strengthening the regulatory framework, improving ease of living and doing business, and promoting energy transition.
Discussions also centred on timely payment of subsidies and government dues, expediting smart metering, leveraging data analytics for demand forecasting and power purchase optimisation, and designing a new debt restructuring scheme for distribution utilities.
The meeting concluded with the GoM reiterating its commitment to implement necessary reforms and to strengthen the power sector by ensuring the long-term financial sustainability of distribution utilities.
