AP to host 4th GoM meeting on power sector reforms

Hans India

23-04-2025

Vijayawada: Andhra Pradesh hosted the 4th meeting of the Group of Ministers (GoM) on Power Sector Reforms here on Tuesday. The meeting was chaired by Shripad Yesso Naik, Union Minister of State for Power and Renewable Energy. Energy Ministers of Uttar Pradesh, Rajasthan, Tamil Nadu, Madhya Pradesh, Maharashtra, and Andhra Pradesh along with senior officials took part in the meeting.
Aravind Kumar Sharma, Energy Minister, Uttar Pradesh, Heeralal Nagar, Energy Minister Rajasthan, Minister for Energy AP, Gottipati Ravi Kumar, Meghana Sakore Bordikar, Minister of Energy Maharashtra have shared the dias along with Minister of State for Power, Shripad Yesso Naik.
The union Energy Minister Shripad Yesso Naik, in his opening remarks, highlighted the significance of coordinated reforms to address the financial and operational challenges faced by power distribution companies (DISCOMs). The Union Minister stressed the need for introducing regulatory reforms, restructuring liabilities, and leveraging emerging technologies like renewable integration, storage solutions, and artificial intelligence to ensure a resilient and future-ready power distribution system.
Shripad Yesso Naik emphasised that timely revision of cost-reflective tariffs, the strengthening of the Appellate Tribunal for Electricity (APTEL) with sufficient benches, and the mandatory implementation of Fuel and Power Purchase Cost Adjustments are essential steps to ensure fair pricing and financial stability. The Minister also highlighted the importance of simplifying and standardising tariff orders and net metering provisions for rooftop solar systems.
The union minister called for the development of clear GST policies for storage systems that allow input tax credits for utilities, along with a well-defined roadmap for expanding Battery Energy Storage Systems (BESS).
He also advocated for financial relief measures such as reducing interest rates offered by REC and PFC, along with the waiver or reduction of prepayment penalties, to ease the debt burden on DISCOMs.
Heeralal Nagar, Energy Minister Rajasthan said that under PM Surya Ghar Muft Bijli Yojana, Rajasthan has set a target to install over 36,700 megawatts through rooftop solar by 2025-26 and Rajasthan state government has announced the installation of 150 units of free electricity connections along with PM Surya Ghar Yojana, ensuring that more than 77 lakh low-consumption domestic consumers benefit from solar-based reliable electricity for up to 150 units per month.
Meghana Sakore Bordikar, Minister of State for Energy, Maharashtra, highlighted that Mahavitaran has already outlined specific measures aimed at ensuring the economic viability of the power utility. She affirmed that Maharashtra remains committed to contributing toward strengthening the power sector and supporting sustainable solutions.
Aravind Kumar Sharma, Energy Minister, Uttar Pradesh highlighted that huge capital investment required if we need to build a future ready distribution System for Viksit Bharat. 'For this cheaper sources of financing are required. High cost of generation is also to be tackled. Rationalisation of coal allocation should be done. RPO trajectory for the states should be made in a practicable manner, keeping in view the demand curve of the states and transmission constraints', he said.
K. Vijayanand, Chief Secretary and Special Chief Secretary Energy Andhra Pradesh, in his closing remarks, conveyed his deep appreciation to all the participants for their insightful deliberations and active participation.
The meeting focused on collaborative policy development to strengthen DISCOMs, streamline regulatory practices, and promote investments, thereby ensuring affordable and reliable power supply to citizens while maintaining fiscal discipline. The successful conclusion of this GoM meeting marks another crucial step in Andhra Pradesh's and India's journey toward creating a sustainable, efficient, and financially healthy power sector. The Representatives from AIDA, REC, PFC has presented on the proposed recommendations for strengthening the DISCOMs.
Avinash Lavania, MD MPPCL, Alok Kumar, DG, AIDA and Former Secretary Power, GoI, Pranav Tayal, Director MoP , Ali shah, Executive Director, PFC , Mahesh JIwade, Private Secretary MoS, Shashank Mishra, JS, MoP, JMD APTRANSCO Smt Kirthi Chekuri, CMD APCPDCL, AKV Bhaskar and other representatives from various states have participated in the meeting.