Improve discoms’ efficiency, need Rs 42L cr by ’32: Power Min to states

Union Power Minister Manohar Lal on Tuesday asked state discoms to improve efficiency as distribution is the most critical link in the power sector, which requires an overall investment of Rs 42 lakh crore by 2032.

Addressing the Regional Conference for the Eastern Region States/UTs in Patna, the minister also suggested states consider setting up one nuclear plant in the state.

The distribution sector is the most critical link in the power sector value chain and the power sector requires an estimated Rs 42 lakh crore investment by 2032, he said.

However, it faces challenges due to poor tariff structures, sub-optimal billing and collection, and delayed payments of government department dues and subsidies.

He stressed the importance of reducing the AT&C losses and the gap between Average Cost of Supply (ACS) and Average Revenue Realised (ARR).

The minister asked states to engage with the Electricity Regulatory Commissions to ensure cost-reflective tariffs and timely issuance of tariff and true-up orders.

He pointed out that distribution utilities should further strive to improve efficiency through expediting infrastructure and smart metering works. Manohar Lal emphasised that the pre-paid smart meters are a way to ensure the timely release of government department dues.