PNS|Vijayawada
The Andhra Pradesh government has called for reduced interest rates and targeted subsidies to improve the financial health of power distribution companies (DISCOMs), during the 4th Group of Ministers (GoM) meeting on Power Sector Reforms held in Vijayawada on Sunday.
Speaking at the meeting, Andhra Pradesh Chief Secretary and Special Chief Secretary (Energy), K Vijayanand, emphasised the need to balance financial viability and social equity in the sector. He urged financial institutions to lower interest rates to ease the burden on DISCOMS and advocated for targeted subsidies to protect low-income consumers while aligning tariffs with market realities.
The state’s Energy Minister, Gottipati Ravi Kumar, reaffirmed Andhra Pradesh’s commitment to improving efficiency, sustainability and financial discipline in the sector. Hosting the meeting under the leadership of Chief Minister Nara Chandrababu Naidu, the state showcased its proactive role in advancing reforms.
The meeting, chaired by Union Minister of State for Power and New & Renewable Energy, Shripad Yesso Naik, saw participation from ministers and officials of Uttar Pradesh, Rajasthan, Tamil Nadu, Madhya Pradesh, Maharashtra and Andhra Pradesh. Union Minister Naik underlined the importance of coordinated regulatory reforms to address the financial and operational challenges of DISCOMs. He called for timely, inflation-indexed tariff revisions, mandatory fuel and power cost adjustments, and cost-reflective pricing.
He also proposed adopting emerging technologies such as AI and energy storage systems to modernise power infrastructure, along with simplifying GST norms for Battery Energy Storage Systems (BESS). States were urged to expedite the implementation of the Revamped Distribution Sector Scheme (RDSS).
Financial relief measures, including reduced interest rates from REC and PFC and waivers on prepayment penalties, were key discussion points to help ease DISCOMs’ debt burdens. The GoM reaffirmed the need for a clear roadmap for regulatory and financial reforms aligned with India’s ‘Viksit Bharat 2047’ vision.
Rajasthan Minister Heeralal Nagar outlined plans to install 36,700 MW of rooftop solar capacity under the PM Surya Ghar Muft Bijli Yojana by 2025–26, benefitting over 77 lakh households with 150 free electricity units per month. Maharashtra’s Meghana Sakore Bordikar highlighted financial reform efforts through Mahavitaran, while Uttar Pradesh’s Aravind Kumar Sharma stressed the importance of affordable capital and rational coal allocation.
Presentations from AIDA, REC and PFC capped the meeting, with strategic inputs on improving DISCOM performance. Notable attendees included Avinash Lavania (MD, MPPCL), Alok Kumar (DG, AIDA), and Pranav Tayal (Director, Ministry of Power), along with senior officials from APTRANSCO and APCPDCL.
