GoM Meet Focuses On Power Distribution Reforms & Financial Viability

Lucknow, Mar 31 (KNN) Minister of State for Power and New and Renewable Energy Shripad Yesso Naik recently chaired the third meeting of the Group of Ministers (GoM) established to address viability issues facing power distribution utilities across the country. 

The meeting, held in Lucknow, brought together energy ministers from Uttar Pradesh, Andhra Pradesh, Madhya Pradesh, and Maharashtra, along with senior officials from central and state governments, state power utilities, Power Finance Corporation (PFC) Ltd, and REC Ltd.

During the meeting, the Union Minister highlighted the discussions from the previous two GoM meetings and emphasised the collective efforts required from member states to improve the power distribution sector. 

He stressed the importance of designing mechanisms for financial restructuring of distribution utilities' liabilities and reducing their interest burden.

Minister Naik outlined several key strategic initiatives, including the development of storage solutions, facilitating daytime power supply for agriculture to lower overall power purchase costs, and reducing subsidy burdens. 

He also underscored the need to implement artificial intelligence and digital innovations while ensuring cost-reflective tariffs for the financial viability of the power sector.

The Joint Secretary of Distribution from the Ministry of Power delivered a presentation highlighting key intervention areas identified during previous GoM meetings. 

The presentation proposed measures to be taken by central government, state governments, and regulatory commissions to address viability concerns.

TATA Power Distribution from Odisha, invited as a special participant, shared best practices and detailed their journey toward achieving profitability in their distribution companies (DISCOMs).

Member states actively participated in the discussions, presenting overviews of their respective state DISCOMs and offering valuable suggestions for improving their financial condition. 

Presentations were made by representatives from Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Maharashtra, and Tamil Nadu.

The meeting included detailed discussions on an action plan that identified ways to reduce outstanding debts and losses of distribution utilities and strategies to make them profitable. 

The Group of Ministers reaffirmed their commitment to taking necessary measures for improving the financial viability of DISCOMs.

In his closing remarks, the Union Minister of State emphasised the need for states to demonstrate greater political will and determination to make the power sector viable. 

He urged member states to work on the ideas that emerged during the meeting. The group recommended inviting the All India DISCOM Association (AIDA) to the next GoM meeting to gather their suggestions.

The members unanimously decided to hold the fourth meeting of the Group of Ministers in Andhra Pradesh in April.

(KNN Bureau)