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Listing the reforms introduced in the past year, the Survey states that DISCOMs have registered a profit from a loss of ₹67,962 crore in 2014-15. File | Photo Credit: Reuters
Listing the reforms introduced in the past year, the Survey states that DISCOMs has registered a profit from a loss of ₹67,962 crore in 2014-15. The reforms which helped this turnaround include implementation of – late payment surcharges, automatic fuel and power purchase cost adjustment on a monthly basis, passage of prudent power procurement and distribution network costs, timely recovery of costs for generators as per adjusted tariffs, effective release of subsidies, revamped distribution sector scheme and allowing state electricity commissions a reasonable leeway for return of equity (RoE).
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The improved state of the DISCOMs is also due to the reduction in Aggregate Technical and Commercial (AT&C) losses, from 22.62% in 2014-2015 to 15.04% and improved cost recovery, states the Survey.
On the whole, the power sector saw a sustained expansion in installed capacity by 11.6% to 509.74 GW as of November 2025. India’s Transformation capacity has increased from 38,805 MVA to 60,260 MVA this year, and the gap between energy demand and supply has declined from 4.2% in 2014-15 to nil by November 2025. A legislation — the Electricity (Amendment) Bill, 2026, is in the pipeline in Parliament’s ongoing Budget Session to promote efficiency, competition, and financial discipline in the power sector.
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The Ministry of Power had already planned a bailout exceeding ₹1 trillion ($12 billion) for debt-ridden State DISCOMs, as reported in October 2025. To receive the funds, States will be required to privatise their utilities and list them on a stock exchange. By divesting 51% of equity, States will get access to a 50-year interest-free loan for the company’s debt. States may either transfer or keep managerial control of the utilities.
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The Economic Survey projects that India’s GDP will grow in the range of 6.8 to 7.2% in 2026-27 while domestic inflation remains low at 1.7% for April-December 2025. After this precusor to India’s financial health, Ms. Sitharaman is scheduled to present her ninth consecutive budget speech – a first on Sunday (February 1, 2026) to a joint session of Parliament.
Published – January 29, 2026 06:58 pm IST
