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States » SouthPosted at: Apr 22 2025 5:16PM


AP: Deliberations held on strengthening distribution utilities at 4th GoM meeting

Vijayawada, Apr 22 (UNI) Focused Deliberations was held on strengthening distribution utilities and Advancing Energy Sustainability at the 4th meeting of the Group of Ministers (GoM) on Power Sector Reforms here on Tuesday.

The meeting was chaired by Union Minister of State for Power Shripad Yesso Naik and brought together Energy Ministers and senior officials from States including Uttar Pradesh, Rajasthan, Tamil Nadu, Madhya Pradesh, Maharashtra, and Andhra Pradesh.

Andhra Pradesh Energy Minister Ravi Kumar noted that the state is championing forward-looking initiatives to enhance the viability, efficiency, and sustainability of the power sector, making it a fitting host for this high-profile national meeting.

Aravind Kumar Sharma, Energy Minister, UP, Heeralal Nagar, Energy Minister Rajasthan, Megahana Sakore Bordikar, MoS Energy Maharashtra and Ravi Kumar attended the meeting.

Shripad Yesso Naik highlighted the significance of coordinated reforms to address the financial and operational challenges faced by power distribution companies (DISCOMs).

He appreciated the Government of AP, Minister Ravi Kumar for their proactive efforts in hosting this important meeting. The Union Minister stressed the need for introducing regulatory reforms, restructuring liabilities, and leveraging emerging technologies like renewable integration, storage solutions, and artificial intelligence to ensure a resilient and future-ready power distribution system.

The Union Minister emphasized that timely revision of cost-reflective tariffs, the strengthening of the Appellate Tribunal for Electricity (APTEL) with sufficient benches, and the mandatory implementation of Fuel and Power Purchase Cost Adjustments are essential steps to ensure fair pricing and financial stability.

He also revealed the importance of simplifying and standardizing tariff orders and net metering provisions for rooftop solar systems, along with annual tariff revisions linked to inflation indices like WPI, to create a transparent and predictable business environment for utilities and consumers alike.

Naik also stressed the importance of modern financial and policy frameworks to support the sector’s growth, and called for the development of clear GST policies for storage systems that allow input tax credits for utilities, along with a well-defined roadmap for expanding Battery Energy Storage Systems (BESS).

He also advocated for financial relief measures such as reducing interest rates offered by REC and PFC, along with the waiver or reduction of prepayment penalties, to ease the debt burden on DISCOMs.

Further, the Union Minister urged all states and stakeholders to speed up the implementation of the Revamped Distribution Sector Scheme (RDSS), which plays a crucial role in modernizing distribution networks and improving service delivery.

Heeralal Nagar said that under PM Surya Ghar Muft Bijli Yojana, Rajasthan has set a target to install over 36,700 megawatts through rooftop solar by 2025-26.
The Rajasthan government has announced the installation of 150 units of free electricity connections along with PM Surya Ghar Yojana, ensuring that more than 77 lakh low-consumption domestic consumers benefit from solar-based reliable electricity for up to 150 units per month.

Meghana Sakore Bordikar highlighted that Mahavitaran has already outlined specific measures aimed at ensuring the economic viability of the power utility. Aravind Kumar Sharma highlighted that huge capital investment is required if we need to build a future ready distribution System for Viksit Bharat.

AP Chief Secretary Kaveti Vijayanand pointed out that while distribution companies must maintain operational discipline, regulators should enable tariff adjustments that reflect real market conditions, possibly linking them to inflation or other economic benchmarks.
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