Power Sector Reforms: Paving the Way for DISCOM Financial Sustainability

Union Minister Shripad Yesso Naik emphasized the importance of cost-reflective tariffs and regulatory reforms for financial sustainability in power distribution. In a meeting with power sector ministers, strategies like inflation-linked tariffs, modern technology adoption, and reduced interest rates were discussed to address DISCOMs' financial challenges.

Union Minister Shripad Yesso Naik stressed the need for cost-reflective tariffs and modern technologies to achieve financial sustainability in the power distribution system. At the fourth Group of Ministers meeting on power sector reforms, Naik outlined key areas for improvement, including regulatory changes and technological adoption.

Naik highlighted that timely cost-reflective tariffs and inflation-linked power purchase costs align with market realities, supporting financial stability for utilities. He also called for deeper regulatory reforms, fuel cost adjustments, and simplified net metering to improve DISCOM health and promote the growth of rooftop solar energy.

During the meeting, Andhra Pradesh Energy Minister G Ravi Kumar and Chief Secretary K Vijayanand reinforced the need for operational discipline, lower interest rates, and targeted subsidies to balance financial health and social welfare. The leaders urged lending institutions to lower interest rates, easing financial burdens on DISCOMs and fostering a sustainable power sector.

(With inputs from agencies.)