India's Power Discoms Turn Profitable After a Decade, Post Rs 2,701 Crore Profit in FY25

• India's power distribution utilities (DISCOMs) and state power departments reported a collective Profit After Tax (PAT) of Rs 2,701 crore in FY 2024-25, marking a significant turnaround after over a decade of losses.
• This positive PAT contrasts sharply with a loss of Rs 25,553 crore in FY 2023-24 and Rs 67,962 crore in FY 2013-14, according to the Ministry of Power.
• Union Power Minister Manohar Lal attributed the improvement to sustained reforms, including the Revamped Distribution Sector Scheme (RDSS), prudential norms, and amendments to electricity rules.
• Key reforms focused on infrastructure modernization, financial viability, smart meter rollout, timely cost adjustments, transparent subsidy accounting, and enforcing timely payments.
• Aggregate Technical and Commercial (AT&C) losses declined from 22.62% in FY 2013-14 to 15.04% in FY 2024-25, and outstanding dues to power generators fell by 96%.

Why It Matters: India's power discoms achieved profitability in FY25 due to comprehensive government reforms and initiatives.