Odisha Emerges As A Leader Amidst GoI Push For Nationwide Distribution Reforms

Privatised discom model in Odisha showcases efficiency, reduced losses, and national recognition as India eyes major Electricity Act amendments

Update: 2025-10-10 16:24 GMT
Power transmission infrastructure. (Representational Image: DC)

Bhubaneswar: As the Union ministry of power unveils an ambitious set of amendments to the Indian Electricity Act, 2025, aimed at reviving India’s ailing power distribution sector, Odisha’s model of privatised electricity distribution has emerged as a model of reform that is already delivering results.

Five years after privatisation, the state’s four power distribution companies (Discoms) have cut Aggregate Technical & Commercial (AT&C) losses by more than ten percentage points, achieving measurable efficiency gains and a striking financial turnaround. In a sector long plagued by inefficiency and mounting losses, Odisha has shown that structural reforms, when paired with accountability, can deliver both operational stability and consumer benefits.

The results are evident on the ground. Over the past half-decade, Odisha’s Discoms have rolled out more than a million new electricity connections while investing close to Rs 5,000 crore in network upgrades, technology integration, staff training, and safety improvements. Led by Tata Power, one of India’s most experienced utilities, in partnership with the state government, the distribution companies now serve around one crore consumers spread across a vast 150,000 sq. km area, catering to a populace of 5 nearly crore people.

Today, in such a short span of time Odisha Discoms have also been recognised among the best in the country by the Ministry of Power (MoP) in their annual ratings.

“Perhaps the most remarkable achievement has been in rural electrification. For the first time, a private player — Tata Power — has transformed power distribution in Odisha’s villages, delivering reliable service to areas that had historically suffered neglect. This success has positioned Odisha as a rare case study in how private-sector efficiency can be harnessed for public good, and a reform model that other states can quickly replicate,” said Dr Pramod Kumar Sahukar, an expert on power reforms.

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