Ministry of Power urges eastern states to strengthen power planning and reduce losses

The Ministry of Power has urged eastern states, including Bihar, to undertake key reforms in power generation planning, transmission development, and distribution efficiency to meet rising electricity demand and ensure reliable supply.

The states have been advised to tie up adequate generation capacities based on projected peak demand and to formulate detailed resource adequacy plans with a balanced energy mix, including nuclear power. Intra-state transmission infrastructure should be developed through tariff based competitive bidding and states have been encouraged to utilise the Rs 1.5 trillion interest-free loan facility announced in Union Budget 2025–26 for capital investments in the power sector. Further, the Ministry recommended measures to reduce aggregate technical and commercial losses and the gap between average cost of supply and average revenue realised. States were also asked to improve power procurement through portfolio optimisation and ensure timely tariff filings.