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CEO Roundtable Highlights Reforms for Power Distribution under Draft National Electricity Policy 2026

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CEO Roundtable Highlights Reforms for Power Distribution under Draft National Electricity Policy 2026

A CEO Roundtable on Power Distribution was convened at the Bharat Electricity Summit 2026 to deliberate on reforms proposed under the draft National Electricity Policy (NEP) 2026, with a focus on strengthening the power distribution segment and ensuring the long-term financial sustainability of distribution companies (DISCOMs).

The roundtable was chaired by Shri Pankaj Agarwal, Secretary, Ministry of Power, and attended by CEOs and senior leaders from leading power sector organizations. Participants welcomed the draft policy and acknowledged its comprehensive and forward-looking framework aimed at addressing emerging challenges in the power sector while supporting India’s long-term economic and energy transition goals.

Industry leaders observed that the proposed policy provides a clear strategic direction for strengthening the sector amid India’s push for sustained high economic growth. They emphasized that the measures outlined—particularly those targeting the distribution segment—would significantly improve financial viability, enhance service quality, and facilitate the adoption of emerging technologies across the power ecosystem.

Discussions highlighted the need for electricity supply to keep pace with the ambitions of Viksit Bharat @ 2047, which envisions India becoming a USD 30 trillion economy with energy independence. The draft NEP 2026 sets a target of increasing per capita electricity consumption to 2,000 kWh by 2030 and over 4,000 kWh by 2047. These targets align with India’s climate commitments to reduce emissions intensity by 45 percent from 2005 levels by 2030 and to achieve net-zero emissions by 2070, requiring a significant transition toward low-carbon energy sources.

The policy outlines a comprehensive framework aimed at addressing structural challenges in the power sector while promoting competition, strengthening grid resilience to integrate higher shares of variable renewable energy, and enabling consumer-centric service delivery through demand-side management initiatives.

Ensuring the financial sustainability of the distribution sector remains a key pillar of NEP 2026. The policy proposes strategies such as optimized power procurement through advanced planning, reduction in Aggregate Technical and Commercial (AT&C) losses, and strengthening corporate governance frameworks. It also envisions bringing AT&C losses to single-digit levels through the phased deployment of smart meters with prepayment functionality, starting with government, commercial, and industrial consumers, supported by regular energy audits and improved accounting systems.

To improve efficiency and accountability, the draft policy recommends the introduction of shared distribution networks to eliminate infrastructure duplication. It also emphasizes the use of GIS-based asset mapping, consumer indexing, and system automation to enhance operational performance and service delivery.

Recognizing the growing role of distributed energy resources, the policy proposes the creation of a Distribution System Operator (DSO) to enable seamless integration of distributed renewable energy, energy storage systems, and Vehicle-to-Grid (V2G) technologies. The initiative aims to support local energy markets, enhance consumer participation, and ensure reliable grid operations.

The policy further prioritizes improving the quality and reliability of power supply. Proposed measures include optimal network redundancy at specified voltage levels and stricter enforcement of service standards. Redundancy at the distribution transformer level is recommended for cities with populations exceeding 10 lakh by 2032, along with the deployment of underground cabling in congested urban areas. Expanding universal electricity access, particularly in border regions, also remains a key objective.

The roundtable concluded with a strong consensus on the need for sustained reforms in the distribution segment to ensure the financial health of DISCOMs and support India’s broader economic growth and clean energy transition under the vision of Viksit Bharat @ 2047.

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