New Delhi, Jan 18 (NationPress) The power distribution sector in India has achieved a remarkable and noteworthy shift, as electricity distribution companies (DISCOMs) alongside power departments have collectively reported a net profit for the first time in many years, as announced by the Ministry of Power on Sunday.

In FY2024-25, these distribution utilities have recorded a total profit after tax (PAT) amounting to Rs 2,701 crore -- a significant turnaround from years filled with heavy losses.

This commendable performance follows a staggering loss of Rs 25,553 crore in FY 2023-24, and an even greater loss of Rs 67,962 crore in FY 2013-14, according to ministry data.

Since the unbundling and corporatization of State Electricity Boards, distribution utilities have consistently faced financial deficits, making the latest figures a substantial milestone for the sector.

Union Power Minister Manohar Lal has characterized this development as the start of a new era for India’s power distribution framework.

He attributed the turnaround to the government's relentless efforts in tackling long-standing financial and operational hurdles encountered by DISCOMs.

“This remarkable achievement was made possible due to the leadership and vision of Prime Minister Narendra Modi, who believes that India is not just driving its growth but also contributing to global progress, with the energy sector playing a crucial role in this,” Lal commented.

“The government remains dedicated to implementing necessary reforms in the sector to ensure that the power industry can support our expanding economy and contribute to the journey towards Viksit Bharat,” he further stated.

In recent years, the government has rolled out several reforms aimed at enhancing the financial stability and efficiency of distribution utilities.

These initiatives include the Revamped Distribution Sector Scheme, which aims at modernizing infrastructure and deploying smart meters, alongside stricter financial criteria that link funding access to performance metrics.

Changes in electricity regulations have also facilitated timely tariff adjustments, improved cost recovery, and transparent accounting of subsidies.

The effects of these reforms are evident not only in profitability but also in various key performance indicators.

Aggregate Technical and Commercial losses, indicative of inefficiencies like power theft and billing discrepancies, have consistently decreased from 22.62 percent in FY 2013-14 to 15.04 percent in FY 2024-25. This reflects enhanced operational efficiency across the states.