BS EDIT: Discom profitability is an encouraging start

By Business StandardPublished On Jan 28, 2026

A TURNING POINT

State discoms returned to profit in FY25 after a decade of losses, signalling reform traction

WHAT CHANGED

Automatic fuel-cost pass-through and smart metering imposed long-overdue financial discipline

MEASURABLE GAINS

The ACS-ARR gap narrowed sharply, while AT&C losses fell to near 15 per cent

INCENTIVES MATTERED

The Revamped Distribution Sector Scheme linked funding to performance and timely payments

THE STRUCTURAL PROBLEM

Free or subsidised farm power still relies on state budgets and cross-subsidies

THE ROAD AHEAD

Retail competition, as proposed in the Electricity Amendment Bill, may unlock lasting reform