India Achieves Near-Total Power Supply, Installed Capacity Hits 520 GW: Power Ministry

New Delhi, Mar 10 (KNN) The Ministry of Power has stated that India currently has adequate power availability, supported by a significant expansion in generation capacity over the past decade.
 
Replying in Parliament, Minister of State for Power Shripad Yesso Naik said the country’s installed power generation capacity has reached 520.511 GW, with 296.388 GW of fresh capacity added since April 2014, helping transform India from a power-deficit to a power-sufficient nation.
 
Power Supply Gap Narrows To Near Zero
 
According to the government, the all-India power supply position for FY 2025–26 (up to January 2026) shows that energy requirements stood at 14,27,436 million units (MU) while 14,27,009 MU was supplied, indicating a minimal gap. During the same period, peak power demand reached 2,45,444 MW, while 2,45,416 MW was met.
 
The gap between energy supplied and required has narrowed significantly, declining from 0.5 per cent in FY 2022–23 to nearly zero in the current financial year, the minister noted.
 
Measures To Strengthen Financial Health Of DISCOMs
 
Citing the 14th Annual Integrated Rating and Ranking Report on Power Distribution Utilities by Power Finance Corporation, the government said power distribution companies (DISCOMs) collectively reported total borrowings of Rs 7.26 lakh crore and accumulated losses of Rs 6.47 lakh crore, while the Average Cost of Supply–Average Revenue Realised (ACS-ARR) gap stood at Rs 0.06 per kWh, based on tariff subsidy received.
 
The Centre has taken several steps to improve the financial health of DISCOMs, including allowing states undertaking power sector reforms to access additional borrowing of 0.5 percent of GSDP and linking loan approvals for state utilities to performance-based prudential norms.
 
Other measures include implementation of Fuel and Power Purchase Cost Adjustment (FPPCA) rules, improved subsidy accounting, and advisories to regulators for timely tariff orders. 
 
The Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 also mandate phased clearance of legacy dues and timely payment of current liabilities by DISCOMs.
 
RDSS And Smart Metering Push
 
The government launched the Revamped Distribution Sector Scheme (RDSS) in 2021 to improve power supply reliability and the financial sustainability of DISCOMs. Projects worth Rs 1.53 lakh crore for distribution infrastructure and Rs 1.3 lakh crore for smart metering have been sanctioned.
 
Approved works include new substations, transformer upgrades, replacement of ageing conductors, underground cabling and agricultural feeder segregation. 
 
The scheme also supports large-scale smart metering, with prepaid meters sanctioned for 19.79 crore consumers. So far, 4.55 crore smart meters have been installed under RDSS and 5.97 crore deployed nationwide across various programmes.
 
These reforms have contributed to measurable improvements in the sector. Aggregate Technical and Commercial (AT&C) losses declined from 21.91 per cent in FY21 to 15.04 per cent in FY25, while the ACS-ARR gap narrowed from Rs 0.69 per kWh to Rs 0.06 per kWh.
 
As a result, DISCOMs collectively recorded a profit after tax of Rs 2,701 crore for the first time, reflecting improved operational and financial performance across the power distribution sector.
 
(KNN Bureau)