Listing of Utilities should be taken up by States to bring investment: Minister
By TIOL News Service
NEW DELHI, FEB 21, 2025: THE Regional meeting of Power Sector was held on 20th February 2025 in New Delhi. Union Minister of Power and Housing & Urban Affairs, Manohar Lal chaired the meeting along with Union Minister of State for Power and NRE Shripad Yesso Naik. The meeting was attended by Union Power Secretary, Additional Chief Secretaries/ Secretaries/ Principal Secretaries (Power/ Energy) of participating States, CMDs of Central and State Power Utilities. Officers from Ministry of Power also participated in the meeting.
Secretary (Power) Pankaj Agarwal in his address highlighted the major concerns about financial health of public sector distribution utilities. He expressed concerns about slow progress of works under RDSS. He mentioned that timely implementation of the works under RDSS would help make the distribution sector operationally efficient. Further, he also urged the States for implementation of the Resource Adequacy Plan in a strategic manner and to resolve pending issues in ongoing projects in the Generation and Transmission projects.
Addressing the stakeholders in his opening address, the Union Minister of State for Power and NRE underlined the importance of a future ready, modern and financially viable power sector to fuel the growth of country on its journey towards becoming a developed nation. He mentioned that the growing demand for electricity supplemented by newer modes of consumption like Electric Vehicles, Data Centres and newer paradigms like RE integration, Battery Storage, Cyber Security of critical Infrastructure and Pumped Storage etc. demand for collective efforts from all concerned.
He pointed out financial viability of distribution sector is vital for the overall growth of power sector in the country. He further mentioned that distribution utilities need to make efforts for expeditious implementation of works sanctioned under RDSS and called the utilities to promote smart meters through effective consumer engagement. He also mentioned about the requirement of strengthening CyberSecurity frameworks so as to safeguard critical infrastructure.
In his closing remarks, Hon'ble Union Minister for Power and Housing & Urban Affairs mentioned that Power Sector has a vast domain and has multiple aspects. To discuss various challenges being faced by different stakeholders and to explore possible solutions, the Ministry has organised this meeting at regional level with participation from northern States. Power Sector has a vital role to play in India's goal for becoming a developed nation by 2047 for which further integration of renewable as well as nuclear sources of energy is required. The world is aiming towards achieving net zero carbon emission and soon we may see demand for products manufactured through green energy only. Further, he mentioned that renewable energy sources should also be coupled with investment in Storage Systems like BESS and PSP.
He mentioned that today's discussions have been fruitful and vital issues like financial viability of DISCOMs, expeditious implementation of works sanctioned under RDSS, transmission constraints, resource adequacy etc. were covered. The DISCOMs were advised to work towards improving their financial viability and have cost-reflective tariffs. States should also work towards listing of their power sector utilities which would help them in attracting funds for future investment to cater to load growth. DISCOMs to work towards improving their rankings for their improved credit worthiness. He also mentioned that energy efficiency is equally important. He mentioned that efforts should also be made towards capacity building of the utility functionaries. States to also implement the best practices in line with their requirements. He also assured full support from Central Government to States for strengthening the power sector.
The Ministry of Power remains dedicated to facilitating inter-state cooperation and addressing emerging challenges in the sector through such regional consultations. The outcomes of this meeting will contribute to the formulation of strategic policies for the sustainable development of India's power sector.
The 13 th Integrated Ratings of 63 Distribution Utilities was launched for the year FY 2023-24. Adani Electricity Mumbai Limited (AEML) topped the ratings for FY 2023-24, followed by Dakshin Gujarat Vij Company Limited (DGVCL), Noida Power Company Limited (NPCL), Madhya Gujarat Vij Company Limited ((MGVCL) and Uttar Gujarat Vij Company Limited (UGVCL).
The 4 th edition of the Consumer Services Rating of DISCOMs (CSRD) report covering performance of DISCOMs for FY 2023-24 was launched during the meeting. Six (6) DISCOMs (BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL), Tata Power Delhi Distribution Limited (TPDDL), Adani Electricity Mumbai Limited (AEML), Tata Power Company Limited (TPCL) Mumbai, NOIDA Power Company Limited (NPCL)) have secured the highest grade "A+", Fifteen (15) DISCOMs secured "A" grade.
The first edition of the Distribution Utilities Ranking (DUR) Report for FY 2023-24 was also launched during the meeting. In the Distribution Utilities category - Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL), Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL) and Tata Power Western Odisha Distribution Limited (TPWODL) topped the rankings. Under Special Category State Utilities -
Uttarakhand Power Corporation Limited (UPCL), Assam Power Distribution Company Limited (APDCL) and Arunachal Pradesh Power Department were the top performers. Under the category of Urban DISCOMs, Adani Electricity Mumbai Limited (AEML), Tata Power Delhi Distribution Limited (TPDDL) and NOIDA Power Company Limited (NPCL) were the best performing DISCOMs.
Agenda for Regional Meeting with States/UTs
Joint Secretary (Distribution), Ministry of Power, GoI made a presentation on the agenda items. Highlights of the presentation are:
Key challenges and strategy to be taken towards a financially viable power sector was highlighted during the presentation.
The meeting saw an enthusiastic participation from States who provided their views on addressing the requirements for improving financial viability of Distribution Utilities.
Inputs received from the States included privatization based model for distribution utilities, lowering of interest rates by lending agencies, rationalization of tariff structure, listing of utilities and Renewable Energy purchase obligations along with support for Battery energy storage systems (BESS) and Pumped Storage Projects (PSP).
A significant portion of the discussions revolved around the Revamped Distribution Sector Scheme (RDSS), emphasizing fast-tracking smart metering projects, utilizing smart metering data analytics, demand response mechanisms, and ensuring cybersecurity.
