Union Minister Emphasises Role of AI, Timely Payments, and RE in Power Distribution Reforms

28 Feb 2025

Union Minister of State for Power and New & Renewable Energy, Shripad Yesso Naik, highlighted the importance of artificial intelligence in demand forecasting and optimizing power purchases. He also emphasized the need for efficient mechanisms to ensure timely payment of government dues, the sharing of best practices among DISCOMs, the expansion of renewable energy, advancements in energy storage, and the acceleration of projects under the Revamped Distribution Sector Scheme (RDSS) as crucial steps to enhance the financial viability of power distribution utilities.

During the second meeting of the Group of Ministers (GoM) on electricity distribution utilities in Mumbai, the minister highlighted that even a 1% increase in Aggregate Technical and Commercial (AT&C) losses leads to financial losses exceeding ?10,000 crore. He emphasized the critical importance of harnessing technological advancements and implementing effective policy measures to strengthen the sector.

Maharashtra Chief Minister Devendra Fadnavis, who chaired the meeting, emphasized the vital role of renewable energy and energy storage solutions in meeting future power demand. He cited the Mukhyamantri Saur Krishi Vahini Yojana as a model initiative for reducing power subsidies and ensuring a reliable daytime power supply for farmers. The Chief Minister called for the Centre’s support in expediting the release of Gross Budgetary Support (GBS) under the RDSS, reviving the UDAY scheme, and providing regulatory relaxations that would allow DISCOM surpluses to be reinvested into infrastructure development.

Energy ministers from Tamil Nadu, Uttar Pradesh, Andhra Pradesh, Rajasthan, and Maharashtra participated in the meeting, providing an overview of their respective DISCOMs, highlighting key challenges, and discussing the reforms they have implemented. Gujarat, invited as a special guest, shared its successful strategies for making DISCOMs profitable. Additionally, the PRAYAS Group delivered a presentation on the financial reforms necessary to strengthen the power distribution sector.