Historic Profit: Government to Strengthen Discoms After ₹2,701 Crore PAT

• India's power distribution utilities (discoms) reported a historic positive Profit After Tax (PAT) of ₹2,701 crore in FY 2024-25, a significant turnaround from previous losses.
• Minister of State for Power Shripad Naik will chair a Group of Ministers (GoM) to review the Finance Commission's report and discuss state liabilities to improve discoms' financial viability.
• Power Minister Manohar Lal Khattar highlighted that while overall profits are up, some of the 50-odd discoms remain loss-making, emphasizing that power distribution is a financial, not a social, sector.
• Aggregate Technical & Commercial (AT&C) losses have significantly reduced from 22.62% in FY 2013-14 to 15.04% in FY 2024-25, and the ACS–ARR gap narrowed to ₹0.06/kWh.
• Key reforms like the Revamped Distribution Sector Scheme (RDSS), smart metering, and Late Payment Surcharge Rules have improved efficiency, reduced outstanding dues to generators by 96%, and shortened payment cycles.

Why It Matters: Government moves to strengthen discoms after historic profit, focusing on financial viability and reforms.