The power sector in coming times is going to become enormous and it is crucial for Discoms to be strong, prosperous, and financially empowered, Power Minister Manohar Lal Khattar said on Wednesday, adding that strong Discoms means improved services and greater sensitivity towards consumers.
The growing economy requires a thriving power sector far more than we can imagine today, he said while delivering the inaugural address at ‘Electricity Distribution Industry Conference ‘EDICON: 2026’ here. Lal urged the State Electricity Regulatory Commissions to move towards cost-reflective tariffs, while also ensuring targeted subsidies for needy consumers in accordance with the provisions of the Electricity Act.
The minister also unveiled the first publication of the annual report of te All India Discoms Association (AIDA), which contains an outlook of the distribution sector, including present efforts from distribution companies to improve the reliability of supply and operational efficiency, the challenges being faced by the distribution companies, and a brief summary of the various initiatives taken by Ministry of Power and CERC to address these challenges.
Lal also awarded 12 Discoms across six different categories. These included Discoms from Gujarat, Odisha, Assam, Bihar, UP, Maharashtra, Rajasthan, Tamil Nadu and West Bengal. Meanwhile, power distribution sector posted a rare and significant turnaround, with electricity distribution companies and power departments together reporting a net profit for the first time in years.
In FY2024-25, distribution utilities recorded a collective profit after tax (PAT) of Rs 2,701 crore -- marking a sharp reversal from years of heavy losses. This positive performance comes after a loss of Rs 25,553 crore in FY 2023-24 and a much deeper loss of Rs 67,962 crore in FY 2013-14, the ministry data showed.
Since the unbundling and corporatisation of State Electricity Boards, distribution utilities had consistently remained in the red, making the latest figures a major milestone for the sector. Power Minister described the development as the beginning of a new chapter for India’s power distribution system. Over the past few years, the government has introduced several reforms aimed at improving the financial health and efficiency of distribution utilities.