ENA Economy 2025-09-16 16:31:36 <p><span style="font-size:14px"><strong>New Delhi, Sep 16 (KNN)</strong> The fifth meeting of the Group of Ministers (GoM) constituted to address the financial viability of electricity distribution utilities was held in New Delhi.</span></p> <p><span style="font-size:14px">The discussions focused on a proposed reform-based debt restructuring scheme for discoms, cost-reflective tariff orders, and the broader role of regulatory commissions in ensuring sector sustainability.</span></p> <p><span style="font-size:14px">The meeting was chaired by Union Minister of Power and Housing &amp; Urban Affairs, Manohar Lal, and attended by Union Minister of State for Power and New &amp; Renewable Energy Shripad Yesso Naik, along with energy ministers from Maharashtra, Uttar Pradesh, Tamil Nadu, Rajasthan, Andhra Pradesh, and Madhya Pradesh.</span></p> <p><span style="font-size:14px">Senior officials from the Centre, state governments, the Central Electricity Authority, Power Finance Corporation, and state utilities also participated.</span></p> <p><span style="font-size:14px">Opening the discussions, the Power Secretary stressed the need for structural reforms to restore financial health in the sector while ensuring that improvements are irreversible and debt traps are avoided.</span></p> <p><span style="font-size:14px">The Minister of State emphasised regulatory reforms and stronger cooperation between Central and State Governments to reduce liabilities and enhance efficiency.</span></p> <p><span style="font-size:14px">The union Power minister underlined the importance of operational and financial stability of discoms in delivering quality electricity supply.</span></p> <p><span style="font-size:14px">He urged states to expedite prepaid smart meter installations in government establishments and reaffirmed the commitment to Power for All, at All Times in an efficient and sustainable manner.</span></p> <p><span style="font-size:14px">Key issues identified included high cross-subsidies, persistent financial losses, and the declining attractiveness of the sector for private investment.</span></p> <p><span style="font-size:14px">The deliberations highlighted reforms such as timely tariff revisions, clearance of government dues, accelerated smart metering, and increased use of data analytics for demand forecasting and power purchase optimisation.</span></p> <p><span style="font-size:14px">It was also noted that state governments ultimately bear responsibility for discom debt. The Electricity (Amendment) Bill, under consideration, was presented as a potential enabler to improve financial viability, strengthen regulation, and support Indias energy transition.</span></p> <p><span style="font-size:14px">The GoM reiterated its commitment to finalising a comprehensive debt restructuring plan and advancing reforms for the long-term sustainability of the power distribution sector.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em><br /> </p> 43518 https://knnindia.co.in/news/newsdetails/economy/group-of-ministers-reviews-debt-restructuring-and-reforms-for-power-distribution-utilities 2025-09-16 16:31:36 knnindia.co.in