Power Sector Reform: New Debt Restructuring Scheme for Distribution Utilities

Union Minister of Power Manohar Lal led the 5th meeting of the Group of Ministers to discuss a new debt restructuring scheme for distribution utilities. The meeting covered state roles in tariffs, subsidies, timely payments, and smart metering, emphasizing collaborative reforms to ensure long-term sector viability.

In a significant move to address the financial struggles of distribution utilities, Union Minister of Power Manohar Lal presided over the 5th meeting of the Group of Ministers. The focus was on designing a new debt restructuring scheme.

The Ministry of Power emphasized the commitment to measures that bolster the financial health of these utilities. Discussions highlighted necessary roles for state governments and regulators in establishing cost-reflective tariffs and assuring timely subsidy payments.

The meeting also stressed the need for smart metering, data analytics, and Ccentral-state collaboration as pivotal elements in restructuring plans to ensure lasting sector viability.

(With inputs from agencies.)