The regional meeting on the power sector took place on February 20, 2025, in New Delhi, bringing together key stakeholders from the central and state governments. The meeting, chaired by the Union Minister of Power and Housing & Urban Affairs, Shri Manohar Lal, along with Union Minister of State for Power and NRE, Shri Shripad Yesso Naik, focused on addressing challenges in the power sector and finding solutions for its improvement. Senior officials from the Ministry of Power, power secretaries from participating states, and CMDs of central and state power utilities attended the discussions.
The meeting emphasized the need to improve the financial health of public sector distribution utilities. The Secretary (Power), Shri Pankaj Agarwal, raised concerns over the slow progress of projects under the Revamped Distribution Sector Scheme (RDSS). He stressed that the timely implementation of RDSS projects would enhance the operational efficiency of the power distribution sector. The states were urged to implement their Resource Adequacy Plans strategically and address challenges in generation and transmission projects.
The Union Minister of State for Power and NRE highlighted the importance of creating a future-ready, financially stable, and modern power sector. He pointed out that the growing electricity demand, driven by electric vehicles, data centers, and renewable energy integration, requires a collective effort from all stakeholders. The financial viability of the distribution sector was recognized as crucial for overall sector growth. Distribution utilities were encouraged to expedite the implementation of RDSS projects and promote the adoption of smart meters through consumer awareness. Strengthening cybersecurity frameworks for critical infrastructure was also discussed.
The Union Minister for Power and Housing & Urban Affairs acknowledged the vast scope of the power sector and the importance of addressing challenges through regional-level discussions. He emphasized that the sector plays a vital role in India’s ambition to become a developed nation by 2047. He also highlighted the importance of renewable energy integration, nuclear power, and investment in energy storage systems such as Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSP). He noted that financial viability, cost-reflective tariffs, and efficient operations of distribution companies (DISCOMs) are essential for ensuring sustainable growth. The states were urged to explore listing their utilities to attract investments and improve creditworthiness.
During the meeting, the Ministry of Power released key reports evaluating the performance of power distribution companies. The 13th edition of the Integrated Ratings for 63 distribution utilities for FY 2023-24 was launched, with Adani Electricity Mumbai Limited securing the top position, followed by Dakshin Gujarat Vij Company Limited and Noida Power Company Limited. The 4th edition of the Consumer Services Rating of DISCOMs report was also released, ranking six DISCOMs, including BSES Rajdhani Power Limited and Tata Power Delhi Distribution Limited, with an A+ grade. Additionally, the first edition of the Distribution Utilities Ranking report was introduced, recognizing Uttar Haryana Bijli Vitran Nigam Limited and Tata Power Western Odisha Distribution Limited as top performers.
The discussions covered key concerns such as financial viability, privatization of distribution utilities, tariff rationalization, and policy support for renewable energy and energy storage. States called for lower interest rates from lending agencies and support for smart metering, demand response mechanisms, and cybersecurity improvements. The Ministry of Power assured full support for strengthening the power sector and facilitating inter-state cooperation to address emerging challenges. The inputs gathered from the meeting will contribute to future policy decisions for sustainable growth in the sector.
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