Metro India News | new delhi

Power distribution utilities across the country have collectively reported a profit of Rs 2,701 crore in FY25, marking a significant turnaround after years of sustained losses, according to an official statement issued by the power ministry on Sunday.

Distribution companies, which have largely remained in the red since the unbundling and corporatisation of State Electricity Boards, had posted a cumulative loss of Rs 25,553 crore in FY24 and a much higher loss of Rs 67,962 crore in FY14. The return to profitability in FY25 signals a notable shift in the financial health of the sector.

Power Minister Manohar Lal said the development marks a new chapter for the distribution segment and reflects the impact of sustained reforms undertaken by the ministry to address long-standing structural issues. He said the energy sector is playing a crucial role in supporting India’s growth and the government remains committed to reforms to enable the power sector to contribute effectively to the vision of Viksit Bharat.

The ministry said the improvement is visible not only in the profit after tax recorded by discoms but also across key performance indicators. Aggregate Technical and Commercial losses have steadily declined from 22.62 per cent in FY14 to 15.04 per cent in FY25, indicating better operational efficiency.

Cost recovery has also improved, with the Average Cost of Supply–Average Revenue Realised gap narrowing sharply from Rs 0.78 per unit in FY14 to Rs 0.06 per unit in FY25. Reforms such as the Electricity Late Payment Surcharge Rules have helped cut outstanding dues to generating companies by 96 per cent, while reducing payment cycles significantly.