At the recent Distribution Utility Meet (DUM), Dr. Praveer Sinha, CEO, Tata Power Company Ltd, stressed that true power sector reform in India must place distribution utilities at its center. Although generation and transmission have advanced significantly, distribution has an excellent opportunity to grow. Now, sustainable progress depends on making discoms financially stable, technologically advanced, and consumer-centric. Equally important is ensuring financial efficiency by optimizing resources, minimizing losses, and adopting cost-effective practices to create a resilient and self-sustaining energy ecosystem.
 

Dr. Praveer Sinha underscored a long-overdue shift toward strengthening distribution utilities as the foundation for long-term power sector stability, mentioning the need for reoriented reforms that place discoms at the forefront. He highlighted: 
 

1. Distribution segments have historically been overlooked despite substantial reforms in generation
and transmission.

2. Emerging consensus acknowledges that sustained improvements hinge on robust distribution utility reforms. 
 

Dr. Sinha explained that significant operational enhancements have cut losses and raised billing accuracy, illustrating how improvements in billing, collection, and AT&C loss reduction are now standard benchmarks for successful reforms. He brought to light: 
 

1. AT&C losses reduced from around 30% to as low as 10-15%, with some states achieving even lower rates. 

2. Billing and collection efficiencies frequently surpass 90%. 

3. Initiatives like UDAY and RDSS have facilitated these operational improvements.
 

Dr. Sinha acknowledged the significant improvements in operational metrics and identifies key opportunities to further strengthen financial stability. By addressing important areas, DISCOMs can achieve sustainable growth and resilience:
 

1. Focusing on optimizing power procurement and transmission costs can enhance financial gains, enabling DISCOMs to reinvest in infrastructure and service quality.

2. Many states are actively working to meet regulatory benchmarks, fostering a culture of compliance that supports transparent and efficient operations.

3. Effectively managing accumulated regulatory assets can convert them into valuable long-term assets, reinforcing the financial foundation of DISCOMs.

 

DISCOMs are poised for transformative growth as they navigate their financial landscape with strategic initiatives. Dr. Sinha highlighted the potential for DISCOMs to achieve self-sustaining operations by addressing key financial aspects:
 

1. DISCOM debt currently stands at approximately ₹7 lakh crore, providing a strong foundation for strategic investments and growth opportunities.

2. With an annual increase of around ₹70,000 crore, DISCOMs are strategically expanding their financial capacity to support infrastructure and service enhancements.

3. By optimizing servicing costs, DISCOMs are allocating more resources towards infrastructure and technology upgrades, paving the way for modernized and efficient operations.

Dr. Sinha highlighted the opportunity to achieve long-term viability by implementing strategic interventions and advanced metering technologies. Key insights include:
 

1. Long-term subsidies can continue to benefit agriculture and low-income households while developing clear strategies to ensure their effective and sustainable use.

2. Transitioning to metered and appropriately priced electricity can enhance revenue streams, enabling reinvestment in infrastructure and service improvements.

3. Implementing solutions like solar pumps provides innovative ways to gradually reduce subsidy dependencies, promoting a more efficient and resilient energy system.
 

Dr. Sinha emphasized the opportunity to build stronger consumer trust and improve operational efficiency by implementing precise metering and fostering transparency. Key points include:
 

1. Addressing ghost customers and provisional billing enhances the integrity of the billing system, ensuring that all consumers are accurately accounted for.

2. Implementing advanced metering and embracing new technologies are essential for obtaining precise data, leading to more efficient operations and improved service delivery.

3. Increasing transparency fosters greater accountability, which in turn boosts revenue realization and strengthens the relationship between DISCOMs and consumers.
 

Dr. Sinha highlighted the dramatic turnaround in Delhi’s discom as a living example that structured reforms, combined with employee involvement and clear and aligned incentives, can achieve remarkable results. He cited:
 

1. Losses reduced from 53% to below 6% post-2002 reforms under Tata Power’s leadership.

2. Employee participation and well-defined incentive structures propelled operational gains.

3. Strong regulatory support ensured consistent improvement.

 

Dr. Praveer Sinha presented Odisha’s success story as a shining example of how the Public-Private Partnership (PPP) model can transform discoms into efficient, profitable, and reliable entities. He highlighted that:
 

1. The PPP model enabled four discoms to achieve profitability during the COVID-19 crisis without relying on state subsidies, marking a significant milestone in India’s power distribution sector.

2. Over two million faulty or outdated meters were replaced, significantly improving billing accuracy and increasing revenue.

3. Focused governance and the adoption of advanced technologies successfully addressed rural collection challenges.

4. Focused governance and the adoption of advanced technologies successfully addressed rural collection challenges.

5. Enhanced services now cater to more than 9.5 million customers across urban and rural areas.

6. In just four years, Odisha’s partnership with Tata Power, under the PPP framework, generated over 53,000 jobs, supported 1,700 local contractors, and issued more than one million new power connections. 

This transformation, achieved through strategic investments, technology integration, and employee involvement under the PPP model, underscores the potential of public-private collaborations in driving systemic improvements and sustainable growth.
 

Dr. Sinha underscored the indispensable role of well-trained, motivated employees and modern technological solutions in ensuring that reforms take root and deliver lasting improvements. He noted that:
 

1. Employee motivation and skill development form the backbone of successful reforms.

2. ERP systems, digital billing, and smart metering ensure efficiency and accountability. 

3. A culture of continuous improvement emerges when staff see tangible career benefits and growth.
 

Dr. Sinha envisioned a power ecosystem where the consumer’s welfare drives decision-making, supported by stable finances, transparent operations, and eco-friendly practices. He affirmed:
 

1. Consumers become the central focus, ensuring both financial viability and environmental stewardship.

2. Cooperation among governments, regulators, utilities, and employees underpins sustainable success.

3. The aim is a self-sustaining, transparent, and consumer-centric power landscape.

Towards the end of his session, Dr. Sinha mentioned that India’s power distribution landscape can be fundamentally reshaped through collaborative, consumer-focused strategies and forward-looking investments in technology and training. He highlighted that empowering employees, ensuring transparent operations, and aligning regulatory and policy frameworks can pave the way for financially stable, reliable, and sustainable utilities. His central vision underscored the transformative potential of adopting Sustainable Utility Management (SUM) practices, marking a pivotal shift from outdated models and laying the foundation for a robust and future-ready energy ecosystem. 

At the recent Distribution Utility Meet (DUM), Mr. Sanjay Banga, President, Transmission and Distribution, at Tata Power Company Limited, delivered an insightful talk on “Leveraging 250 million Smart Meters to Drive Digitalization of Discoms”. He urged regulators, leaders, and employees to collaborate on a unified digital vision, ushering in a new era of technological excellence in India's power distribution landscape.