India’s Power Sector Reforms: Bold Steps Towards Global Energy Leadership Union Minister of Power and Housing & Urban Affairs, Manohar Lal, while addressing the gathering, emphasized the need for a financially strong and technologically advanced power sector to support India’s economic ambitions.
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The Ministry of Power held a high-level regional consultation with representatives from ten northern states and union territories.
NEW DELHI: In a decisive move to strengthen India’s power sector, the Ministry of Power convened a high-level regional consultation with representatives from ten northern states and union territories, including Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Ladakh, Madhya Pradesh, Punjab, Rajasthan, Uttar Pradesh, and Uttarakhand. The discussions focused on financial sustainability, infrastructure modernization, renewable energy expansion, and cybersecurity—critical areas that will shape India’s energy future and align its growth with global power sector advancements.
Union Minister of Power and Housing & Urban Affairs, Manohar Lal, while addressing the gathering, emphasized the need for a financially strong and technologically advanced power sector to support India’s economic ambitions.
“If India is to emerge as a developed nation by 2047, we must ensure an uninterrupted, efficient, and sustainable power supply. Strengthening the financial viability of DISCOMs, integrating advanced storage solutions, and increasing private sector participation will be key to this transformation,” he stated.
As India charts its path towards 500 GW of non-fossil fuel energy capacity by 2030 and a net-zero target by 2070, the country must match global benchmarks. He pointed to China’s rapid renewable energy expansion, the European Union’s €250 billion green energy investments, and the United States’ large-scale adoption of grid-scale storage solutions as examples India must learn from.
At the heart of the discussions was the privatization and listing of power distribution companies (DISCOMs)—a move aimed at unlocking capital and improving efficiency. Countries like Germany, Brazil, and the UK have successfully transitioned to privatized models, significantly reducing transmission and distribution losses while enhancing customer service. In India, while cities like Delhi and Mumbai have seen success with private distribution, states such as Uttar Pradesh and Bihar still face high AT&C (Aggregate Technical & Commercial) losses, exceeding 25%.
Pankaj Agarwal, Secretary (Power), underscored the urgency of financial reforms, warning that without structural changes, DISCOMs will continue to struggle with mounting debts and inefficiencies.
“States must act swiftly to restructure their power utilities, implement cost-reflective tariffs, and embrace innovative financing models. Privatization and listing of DISCOMs will attract the much-needed investment to sustain growing demand,” he said.
The integration of renewable energy and battery storage solutions was another crucial agenda item. While India has surpassed 180 GW of renewable capacity, achieving long-term energy security requires large-scale investments in Battery Energy Storage Systems (BESS) and Pumped Storage Projects (PSP). The United States has committed $9 billion to energy storage, while China has installed over 40 GW of pumped hydro capacity—far exceeding India’s current storage capabilities.
The Minister urged states to fast-track compliance with Renewable Purchase Obligations (RPOs) and sign long-term Power Purchase Agreements (PPAs) to ensure a stable renewable energy ecosystem.
“Renewable energy alone is not enough. Storage solutions must be a priority. Without grid-scale storage, we cannot guarantee reliability,” Shri Shripad Yesso Naik, Minister of State for Power and New & Renewable Energy, emphasized.
Another key concern raised was cybersecurity in the power sector. As grids become more digitized and interconnected, the risk of cyber threats has increased significantly. South Korea has implemented AI-driven cybersecurity mechanisms, Canada follows a zero-trust security model, and Europe has enacted stringent cyber-resilience policies for energy infrastructure. India, too, must build strong digital defenses to protect its power sector from emerging cyber threats.
“Cyber threats are no longer a future risk—they are a present danger. Strengthening grid cybersecurity is just as important as expanding power generation,” said the Power Minister.
The meeting also saw the release of key performance reports evaluating India’s power utilities. Adani Electricity Mumbai Ltd. secured the top spot in the Integrated Ratings for Distribution Utilities (FY 2023-24), followed by Dakshin Gujarat Vij Company Ltd. (DGVCL) and Noida Power Company Ltd. (NPCL). In the Consumer Service Ratings of DISCOMs, top performers included BSES Rajdhani Power Ltd., Tata Power Delhi Distribution Ltd., and NOIDA Power Company Ltd., all receiving “A+” grades. The first-ever Distribution Utilities Ranking (DUR) Report highlighted Haryana’s UHBVNL and DHBVNL, along with Tata Power Western Odisha Distribution Ltd., as the highest-ranked performers.
These rankings are expected to improve transparency, attract global investors, and push utilities towards enhanced efficiency and reliability—a strategy successfully employed by France, the UAE, and Norway in their power sectors.
In his concluding remarks, Shri Manohar Lal emphasized that India’s power sector reforms must align with global trends in sustainability, digital transformation, and private sector participation.
“We must take bold steps to transform our power sector. The financial sustainability of DISCOMs, technological advancements, and smart infrastructure development will define India’s energy future,” he said.
The outcomes of this meeting will play a crucial role in shaping India’s policy direction for power sector reforms. With energy demand expected to double by 2040, the decisions made today will determine India’s competitiveness in the global energy landscape. The Ministry of Power reaffirmed its commitment to collaboration with states and international stakeholders to build a modern, resilient, and globally competitive power sector that will drive India’s economic ambitions forward.
-Dr. Shahid Siddiqui, Follow via X @shahidsiddiqui
