AP Hosts 4th GoM Meeting on Power Sector Reforms
Focus on collaborative policy development to strengthen Discoms
Vijayawada: Union Power Minister Shripad Yesso Naik has stressed the need for regulatory reforms, including “restructuring of liabilities and leveraging emerging technologies like renewable integration, storage solutions and artificial intelligence” to ensure a resilient and future-ready power distribution system.
Andhra Pradesh hosted the 4th meeting of the group of ministers (GoM) on power sector reforms here on Tuesday. Chaired by Naik, it brought together state energy ministers and senior officials from Uttar Pradesh, Rajasthan, Tamil Nadu, Madhya Pradesh, Maharashtra and Andhra Pradesh.
UP energy minister Aravind Sharma, Rajasthan’s Heeralal Nagar, AP’s Gottipati Ravikumar and Maharashtra’s Megahana Bordikar participated in the discussions.
The meeting focused on collaborative policy development to strengthen DISCOMs, streamline regulatory practices and promote investments, thereby ensuring affordable and reliable power supply to citizens while maintaining fiscal discipline. Ravikumar reaffirmed AP’s commitment to reforms in the distribution sector. The state, he said, is championing forward-looking initiatives to enhance the viability, efficiency and sustainability of the power sector.
Shripad Naik highlighted the significance of coordinated reforms to address the financial and operational challenges faced by power distribution companies. Timely revision of cost-reflective tariffs, strengthening of the appellate tribunal for electricity with sufficient benches and mandatory implementation of fuel and power purchase cost adjustments are essential to ensure fair pricing and financial stability, he said.
Naik also highlighted the importance of simplifying and standardizing tariff orders and net metering provisions for rooftop solar systems. He also called for annual tariff revisions linked to inflation indices like WPI to create a transparent business environment for utilities and consumers alike.
He advocated 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.
Naik urged all states and stakeholders to speed up implementation of the revamped distribution sector scheme, which plays a crucial role in modernising distribution networks and improving service delivery. He said the GoM identified actionable strategies, including the introduction of a financial restructuring scheme, enhancing private sector participation, and encouraging the implementation of advanced metering and investment plans.
Heeralal Nagar said that under PM Surya Ghar Muft Bijli Yojana, Rajasthan set a target to generate over 36,700mw through rooftop solar by 2025-26. The state government has also announced the supply of 150 units of free electricity along with PM Surya Ghar Yojana, ensuring that more than 77 lakh ordinary domestic consumers benefit from solar-based electricity for up to 150 units per month.
Meghana Bordikar, Aravind Sharma, and AP’s chief secretary and special chief secretary energy K. Vijayanand emphasised the critical need for cost-reflective tariffs to ensure financial sustainability to Discoms.