There are two key elements to the power sector reforms—making the state discoms, or power distribution companies, financially and operationally viable; and accelerating the process of increasing power generation capacity.

AT&C (aggregate technical and commercial) losses have come down from 22.3 per cent in 2020/21 to 15.4 per cent in 2023/24. But it still needs to be reduced further (some states are lagging behind in this). Meanwhile, distribution companies incurred a fiscal loss of Rs 68,832 crore in 2022-23.

The process of getting the accounts back on track, streamlining payments and disciplining the gencos (generation companies) and transcos (transmission companies) is underway. The idea is to make the discoms sustainable and capable of meeting the growing demand for electricity.

As the mercury rose across most parts of the country on May 30, power generation units were able to meet the maximum demand, which reached 250 GW (and is expected to reach 260 GW as the summer progresses).

Peak demand has risen from 216 GW in 2022 and 230 GW last summer. Khattar needs to plan new capacity additions to meet rising demand, and not just that, but also motivate states to follow reforms and continue investing in upgrading distribution networks.

What needs to be done

Discom reforms

Khattar’s predecessor, former bureaucrat R.K. Singh, adopted a coaxing and threatening approach to get the law implemented. Khattar will have to continue this approach or find some other way to motivate states to implement discom reforms

Boost energy efficiency

Globally, India is already the third-largest producer and consumer of electricity with an installed capacity of 430 GW by the end of 2023. It now has ambitious plans to add another 500 GW by 2031-32. Huge investments will be required to increase transmission capacity.

Back to fossil fuels

The surge in power demand has led to a simultaneous rise in the demand for coal and natural gas. In fact, Coal India Limited may break all purchase records this year. The power ministry will have to ensure uninterrupted supply to thermal power stations

Green ambitions

Amendments to the Electricity Act that empower customers and simplify the setting up of solar power installations should be made. And other such reforms should also be done in the power sector. However, scaling it on a large scale will be a challenge. However, India has committed to 500 gigawatts of green energy by 2030

Manohar Lal Khattar, 70 years: BJP, Minister of Energy

– Early life Born in Rohtak’s Nindaana village, Khattar hails from a family affected by the country’s partition. His roots are in Jhang district of present-day Pakistan. The former Haryana chief minister is an old chawl of the RSS. He joined the Sangh in 1977. An unmarried Khattar was shunted to the BJP in the mid-’90s and was surprisingly chosen as the chief minister in 2014. He was not known to many then.

– Political career After serving for a decade, Khattar stepped down in March to contest the Lok Sabha election from Karnal. His tenure as chief minister saw initiatives such as the establishment of all-women police stations and the implementation of schemes to improve the state’s sex ratio. Khattar has also been embroiled in controversies over his remarks on women

– Current role: Khattar will have to work at the grassroots level as the process of streamlining state discoms is still underway

state Minister

Shripad Yesso Naik, 71 years: BJP

– Naik, an evergreen six-time MP from North Goa, is one of the few BJP MPs from the Vajpayee era who is still relevant in national politics.