India, Jan 18 : India’s electricity distribution sector has achieved a rare and significant milestone, with DISCOMs and state power departments collectively reporting a net profit for FY2024-25, the Ministry of Power said on Sunday.
Distribution utilities recorded a profit after tax (PAT) of Rs 2,701 crore, marking a sharp turnaround from a loss of Rs 25,553 crore in FY2023-24 and a massive Rs 67,962 crore loss in FY2013-14. Since the unbundling and corporatisation of State Electricity Boards, DISCOMs had consistently remained in the red, making this profitability a landmark achievement for the sector.
Union Power Minister Manohar Lal hailed the development as the start of a “new chapter” for India’s power distribution system. He credited sustained government efforts and reforms, led by Prime Minister Narendra Modi, for addressing long-standing financial and operational challenges in the sector.
Key reforms contributing to the turnaround include the Revamped Distribution Sector Scheme, which focuses on modernising infrastructure and installing smart meters, as well as stricter financial norms linking funding access with performance. Changes in electricity rules have improved tariff revision processes, cost recovery, and transparency in subsidy accounting.
Operational efficiency has also improved. Aggregate Technical and Commercial (AT&C) losses, which measure inefficiencies like power theft and billing gaps, have steadily declined from 22.62% in FY2013-14 to 15.04% in FY2024-25, reflecting better management and reduced wastage across states.
The government’s reforms have not only brought DISCOMs back into the black but also strengthened the foundation for a more sustainable and financially healthy power sector capable of supporting India’s growing economy.