New Delhi, Feb 24 (.) Minister of State for Power Shripad Yesso Naik on Tuesday said that financially strong and digitally intelligent DISCOMs are central to achieving the nation’s energy vision.
Addressing the 4th DISCOM Conclave 2026 here, Naik highlighted India’s power sector transformation — from universal electrification to the target of 500 GW renewable energy capacity.
Referring to the installation of 5.5 crore smart meters under the Revamped Distribution Sector Scheme (RDSS), he said the integration of artificial intelligence in demand forecasting, grid management and operational efficiency will define the next phase of reforms.
He called upon industry, innovators and financial institutions to collaborate in building next-generation DISCOMs aligned with the vision of Viksit Bharat 2047.
Chairperson of the Central Electricity Authority, Ghanshyam Prasad, said building next-generation utilities demands excellence in both technical reliability and digital intelligence.
He emphasised that DISCOMs must progressively achieve N-1 reliability standards to ensure uninterrupted and quality power supply. Digital transformation, he added, must move beyond smart metering to establish integrated digital architectures with interoperable systems and strong cybersecurity frameworks.
Leveraging granular consumption data, he said, can significantly enhance demand forecasting, peak load prediction and dynamic resource planning.
Alok Kumar, Director General of the All India Discoms Association, noted that Indian DISCOMs have recorded a turnaround in FY25 with reduced aggregate losses and improved profitability.
With Aggregate Technical and Commercial (AT&C) losses at around 15 per cent, he said there is scope to close the gap with the global benchmark of 7.5 per cent.
He stressed the need to improve billing efficiency to 92–93 per cent, ensure 100 per cent collection efficiency, guaranteed timely state subsidy payments and enable realistic tariff revisions by State Electricity Regulatory Commissions.
Addressing timely subsidies and tariff reforms, he observed, could resolve a significant portion of the sector’s financial stress, especially as electricity demand is projected to grow four to five times by 2047.
P R Kumar, MD & CEO of Noida Power Company Limited, said AT&C losses have declined from over 25 per cent in FY14 to nearly 15 per cent in FY25, while the ACS-ARR gap has narrowed sharply.
However, he cautioned that financial vulnerability persists, with a majority of DISCOMs continuing to face weak debt service coverage ratios.
Strengthening financial resilience, he said, require sustained loss reduction, optimisation of power purchase costs and implementation of cost-reflective tariffs.
With renewable energy expected to form a major share of future capacity additions, he underlined that smart metering, AI-based forecasting, SCADA systems and advanced metering infrastructure are critical to transforming DISCOMs into intelligent energy service providers.
Dr Ranjeet Mehta, CEO and Secretary General of the PHD Chamber of Commerce and Industry, said DISCOMs are evolving beyond traditional power distributors into energy managers and digital service providers.
With data analytics, AI-driven forecasting and improved consumer interfaces, he said utilities can become more consumer-centric and financially sustainable, positioning themselves as key enablers of India’s energy transition. . SAS KK