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Power sector set for AI-driven shift as CAG plans major audit framework

CAG K Sanjay Murthy says AI and data analytics are reshaping the power sector and highlights upcoming audits on discom performance, PM Surya Ghar and regulatory challenges

K Sanjay Murthy, K Sanjay, CAG
Speaking at the national conference on the power sector organised by the CAG office, Murthy said audit priorities must be aligned to the work being done to provide context, best practices and have a three- to four-year pipeline of audit products. (Photo: PTI)
Nandini Keshari New Delhi
2 min read Last Updated : Feb 23 2026 | 8:08 PM IST
The increasing use of artificial intelligence and big data analytics is strengthening the power sector’s capacity to tackle inherent complexities, Comptroller and Auditor General of India (CAG) K Sanjay Murthy said today.
 
Speaking at the national conference on the power sector organised by the CAG office, Murthy said audit priorities must be aligned to the work being done to provide context, best practices and have a three- to four-year pipeline of audit products.
 
He said it is important for the entire power sector that operational efficiencies and financial sustainability of discoms are enhanced and strengthened through focused and sustained efforts. “The vision of enhancing per capita electricity consumption from 1,460 kilowatt hour (kWh) at present to 2,000 kWh by 2030 and 4,000 kWh by 2047, and providing reliable 24x7 quality power through a financially viable and environmentally sustainable power sector would require all the constituents of the sector,” he said.
 
The CAG office has initiated a horizontal audit of operational and financial performance of discoms and a performance audit of the PM Surya Ghar Muft Bijli Yojana, informed Additional Deputy CAG Guljari Lal.
 
“Strengthening and augmenting of transmission capacity in selected states will also be undertaken. Subject-specific compliance audit of battery energy storage systems, the green energy corridor scheme and market development is also contemplated during the next few years. A horizontal, subject-specific compliance audit of regulatory challenges will also be done in the next few years,” he said.
 
The conference was attended by the secretaries of power from the states and the Centre, chairpersons of the Central Electricity Regulatory Commission (CERC), Central Electricity Authority (CEA) and CMDs of NTPC, NHPC, SECI, PFC, Grid-India and PGCIL, and CMDs and MDs of selected generation, transmission and distribution companies and state PSUs.
 
Speaking at the same event, MNRE Secretary S K Sarangi said the states are bothered with sourcing power, managing distribution and ensuring they have the least gap between average cost of procurement and average cost of supply. However, at the central level, there is a concern relating to identifying the right balance and finding the least-cost energy transition pathway for the country, he said.

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Topics :Artificial intelligenceBig DatacagIT sectorIndustry News

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