Union Minister Manohar Lal Chairs 5th Meeting on Distribution Utilities Viability

New Delhi , 16 September 2025- Union Minister of Power and Housing & Urban Affairs Manohar Lal chaired the fifth meeting of the Group of Ministers (GoM) formed to address the financial challenges of India’s electricity distribution utilities.

The session brought together key energy leaders, including Union Minister of State for Power and New & Renewable Energy Shripad Yesso Naik, Maharashtra Renewable Energy Minister Atul Save, Uttar Pradesh Energy Minister A. K. Sharma, Tamil Nadu Energy & Transport Minister S. S. Sivasankar, and Rajasthan Minister of State for Energy Hiralal Nagar. Participating via video conference were Andhra Pradesh Energy Minister Gottipati Ravi Kumar and Madhya Pradesh Energy Minister Pradyuman Singh Tomar. Senior officials from the Centre, State governments, state power utilities, and Power Finance Corporation (PFC) Ltd. also attended.

Opening the meeting, the Power Secretary emphasized the urgency of reforms to restore the financial viability of distribution utilities and prevent future debt traps. He explained that the GoM’s mission is to identify and recommend measures to ensure lasting improvement.

The Minister of State for Power highlighted the need for regulatory reforms and debt reduction strategies, noting that these steps are essential for delivering reliable, high-quality electricity to consumers.

Manohar Lal stressed the importance of maintaining the operational and financial health of distribution utilities to guarantee continuous, affordable power supply. He urged rapid installation of prepaid smart meters in government establishments and called for collective action from the Centre, States, and Regulatory Commissions to achieve the goal of “Power for All, at All Times.”

Presentations from ministry officials outlined the root causes of financial instability, such as high cross-subsidies and mounting losses that deter private investment. Proposed reforms included enforcing full-cost tariffs by Regulatory Commissions, encouraging mediation to resolve disputes quickly, and recognizing the debt of distribution utilities as a direct liability of state governments.

The meeting also discussed the upcoming Electricity (Amendment) Bill, which aims to strengthen regulatory frameworks, enable energy transition, and improve financial sustainability in the sector.

The Group of Ministers reaffirmed their commitment to introduce a new, reform-based debt restructuring scheme and to implement lasting measures for the financial health of India’s distribution utilities.