The Ministry of Power convened the fifth meeting to review the viability of power distribution companies and proposed targeted reforms.
The ministry highlighted the need for coordinated action by the centre, states and regulators to improve the operational and financial health of discoms. It urged state governments to accelerate the rollout of prepaid smart meters, beginning with government establishments, to improve revenue collection and energy accounting. The ministry also called for structural reforms to reduce discom debt and losses, including timely clearance of government dues, recognition of utility debt as a state liability, and settlement of subsidy arrears. It recommended issuing cost-reflective tariffs, allowing states to provide targeted subsidies directly. Other proposals included using data analytics for demand forecasting and designing a new scheme for debt restructuring. Provisions under the Electricity (Amendment) Bill were also discussed to support regulatory reforms, energy transition, and private sector participation.