4 months ago
2
Making a decisive turnaround, India’s powerfulness distribution utilities – Distribution Companies (DISCOMs) and powerfulness departments recorded a affirmative Profit After Tax (PAT) of ₹2,701 crore past year, stated the Economic Survey 2026-27. Tabled successful Lok Sabha connected Thursday (January 26, 2026) by Finance Minister Nirmala Sitharaman, the Economic Survey stated that a streamlined outgo subject has helped trim outstanding dues to DISCOMs, which reduced from ₹1.4 lakh crore (June 2022) to ₹4,927 crore (January 2026).
Listing the reforms introduced in the past year, the Survey states that DISCOMs has registered a nett from a nonaccomplishment of ₹67,962 crore successful 2014-15. The reforms which helped this turnaround see implementation of - late payment surcharges, automatic substance and powerfulness acquisition outgo accommodation connected a monthly basis, transition of prudent powerfulness procurement and organisation web costs, timely betterment of costs for generators arsenic per adjusted tariffs, effectual merchandise of subsidies, revamped organisation assemblage strategy and allowing authorities energy commissions a tenable leeway for instrumentality of equity (RoE).
The improved authorities of the DISCOMs is besides owed to the simplification successful Aggregate Technical and Commercial (AT&C) losses, from 22.62% in 2014-2015 to 15.04% and improved outgo recovery, states the Survey.
On the whole, the powerfulness assemblage saw a sustained expansion successful installed capableness by 11.6% to 509.74 GW arsenic of November 2025. India’s Transformation capableness has accrued from 38,805 MVA to 60,260 MVA this year, and the spread betwixt vigor request and proviso has declined from 4.2% successful 2014-15 to nil by November 2025. A authorities — the Electricity (Amendment) Bill, 2026, is successful the pipeline in Parliament’s ongoing Budget Session to beforehand efficiency, competition, and fiscal subject successful the power sector.
Click present to work the Economic Survey 2025-26
The Ministry of Power had already planned a bailout exceeding ₹1 trillion ($12 billion) for debt-ridden State DISCOMs, arsenic reported in October 2025. To person the funds, States will be required to privatise their utilities and database them connected a banal exchange. By divesting 51% of equity, States volition get entree to a 50-year interest-free indebtedness for the company’s debt. States may either transportation oregon support managerial power of the utilities.
Follow Economic Survey 2025-26 LIVE
The Economic Survey projects that India’s GDP volition grow in the scope of 6.8 to 7.2% successful 2026-27 portion home inflation remains low astatine 1.7% for April-December 2025. After this precusor to India’s fiscal health, Ms. Sitharaman is scheduled to contiguous her ninth consecutive fund code – a archetypal connected Sunday (February 1, 2026) to a associated league of Parliament.
