NEW DELHI: India’s power distribution sector has posted a rare and significant turnaround, with electricity distribution companies (DISCOMs) and power departments together reporting a net profit for the first time in years, the Ministry of Power said on Sunday.
In FY2024-25, distribution utilities recorded a collective profit after tax (PAT) of Rs 2,701 crore -- marking a sharp reversal from years of heavy losses.
This positive performance comes after a loss of Rs 25,553 crore in FY 2023-24 and a much deeper loss of Rs 67,962 crore in FY 2013-14, the ministry data showed.
Since the unbundling and corporatisation of State Electricity Boards, distribution utilities had consistently remained in the red, making the latest figures a major milestone for the sector.
Union Power Minister Manohar Lal described the development as the beginning of a new chapter for India’s power distribution system.
He said the turnaround is the result of sustained efforts by the government to address long-standing financial and operational challenges faced by DISCOMs.
“This achievement was possible due to the leadership and vision of the Prime Minister Narendra Modi captured in his words that, India is driving not only its growth but also the growth of the world, with the energy sector playing a significant role in this,” Lal stated.
“The government is committed to the required reforms in the sector so that the power sector can support our growing economy and play its part in the journey towards Viksit Bharat,” he added.
Over the past few years, the government has introduced several reforms aimed at improving the financial health and efficiency of distribution utilities.
These include the Revamped Distribution Sector Scheme, which focuses on modernising infrastructure and rolling out smart meters, and stricter financial norms that link access to funding with performance benchmarks.
Changes in electricity rules have also helped ensure timely tariff revisions, better cost recovery and transparent accounting of subsidies.
The impact of these reforms is visible not only in profitability but also in key performance indicators.
Aggregate Technical and Commercial losses, which reflect inefficiencies such as power theft and billing gaps, have steadily declined from 22.62 per cent in FY 2013-14 to 15.04 per cent in FY 2024-25. This indicates improved operational efficiency across states.