Power DISCOMs End Years of Losses, Achieve Rs 2701 Crore Profit in FY25

• Indian electricity distribution utilities (DISCOMs) collectively reported a positive Profit After Tax of Rs 2701 crore in FY25, a significant turnaround after years of losses.
• This marks a historic achievement, contrasting sharply with losses of Rs 25553 crore in FY24 and Rs 67962 crore in FY14.
• Union Power Minister Manohar Lal attributed this success to government reforms and Prime Minister Narendra Modi's vision, emphasizing the energy sector's role in India's growth.
• Key reforms include the Revamped Distribution Sector Scheme for infrastructure modernization and smart metering, and additional prudential norms linking utilities to performance standards.
• Amendments to electricity rules ensured timely cost adjustment, balanced tariffs, transparent subsidy accounting, and the Late Payment Surcharge Rules reduced outstanding dues to power generators by 96%.

Why It Matters: Indian power distribution companies achieved profitability in FY25, ending years of losses due to government reforms.