Group of Ministers reviews various issues related to power sector

Delhi: Minister of State for Power and New & Renewable Energy Shripad Yesso Naik chaired the third meeting of the Group of Ministers constituted to address issues related to the viability of distribution utilities in the country. The meeting, held in Lucknow, was attended by the Energy Ministers of Uttar Pradesh, Andhra Pradesh, Madhya Pradesh and Maharashtra, besides senior officials of the Central Government, State Governments, State Power Utilities, Power Finance Corporation (PFC) Ltd and REC Ltd. In the meeting, the Union Minister highlighted the discussions held during the first two meetings of the Group of Ministers and the collective efforts expected from the member states to reform the power distribution sector.

He highlighted the need for financial restructuring of liabilities of distribution utilities, reducing interest burden on utilities, development of storage solutions, devising a mechanism to facilitate daytime power supply for agriculture, so that the overall power purchase cost is reduced and the subsidy burden is reduced. The Minister also highlighted the need to implement AI and digital innovations and ensure cost-reflective tariffs for financial viability of the power sector. He said the implementation of these measures would help utilities improve financial sustainability.