Centre says states should list financially viable power utilities; ₹42 tn investment needed in power sector by 2030
- Power minister said 18 sites have been identified for possible nuclear power plants.
New Delhi: States should consider listing their power utilities including generation, transmission and distribution companies which are financially viable, in a bid to raise funds and increase operational efficiency, the Union power minister said.
Addressing the media after a conference of state power ministers, Manohar Lal, the Union power minister said that there would be a requirement of ₹42 trillion of investments into the power sector by 2030 for which fundraising avenues need be looked into.
“With the growing power demand, there is a growing need for investment in the sector and improving operational efficiencies. States may identify and take up utilities for listing,” he said, adding that Haryana and Gujarat have shown interest in listing their power utilities.
He said that although power generation and transmission companies across states are largely in good financial health, distribution companies (discoms) have to significantly improve their financial viability to go public.
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Noting that the aggregate technical and commercial (AT&C) losses of discoms have increased to 17.6% in FY24 from 15.4% in the previous fiscal year, the minister said the Centre has suggested states to calculate technical and commercial losses separately to allow targeted solutions.
"States should look into addressing losses with dedicated methodologies for both technical and commercial losses," he said.
The minister also informed that the outstanding debt of discoms stands at ₹6.84 trillion, while accumulated losses currently stand at ₹6.46 trillion. He called upon states to accelerate reform measures to reduce this burden and improve financial sustainability.
The conference chaired by the Union minister was attended by the chief minister of Jammu & Kashmir Omar Abdullah, three deputy chief ministers and 12 power ministers of states along with principal secretaries of states and other officials.
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Further, during the deliberations on Tuesday, the minister also stressed on the need to expand the nuclear power generation capacity and asked states to look for suitable sites for such projects. Currently, 18 sites have been identified for possible nuclear power plants.
He said that government aims to increase India's nuclear power generation capacity to 20 GW by 2032 from the current 8 GW. "States which are away from the coal sources should consider setting up of nuclear power plants at the sites where coal based thermal power plants have completed their life," he said.
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Business NewsEconomyCentre says states should list financially viable power utilities; ₹42 tn investment needed in power sector by 2030
First Published:12 Nov 2024, 10:38 PM IST
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