Listing the reforms introduced in the past year, the Survey states that DISCOMs have registered a profit from a loss of ₹67,962 crore in 2014-15. File | Photo Credit: Reuters Making a decisive turnaround, India’s power distribution utilities – Distribution Companies (DISCOMs) and power departments recorded a positive Profit After Tax (PAT) of ₹2,701 crore last year, stated the Economic Survey 2026-27. Tabled in Lok Sabha on Thursday (January 26, 2026) by Finance Minister Nirmala Sitharaman, the Economic Survey stated that a streamlined payment discipline has helped reduce outstanding dues to DISCOMs, which reduced from ₹1.4 lakh crore (June 2022) to ₹4,927 crore (January 2026). Listing the reforms introduced in the past year, the Survey states that DISCOMs has registered a profit from a loss of ₹67,962 crore in 2014-15. The reforms which helped this turnaround include implementation of – late payment surcharges, automatic fuel and power purchase cost adjustment on a monthly basis, passage of prudent power procurement and distribution network costs, timely recovery of costs for generators as per adjusted tariffs, effective release of subsidies, revamped distribution sector scheme and allowing state electricity commissions a reasonable leeway for return of equity (RoE). Also Read | Financial sector regulators must walk the tightrope to balance growth with stability: Economic Survey The improved state of the DISCOMs is also due to the reduction in Aggregate Technical and Commercial (AT&C) losses, from 22.62% in 2014-2015 to 15.04% and improved cost recovery, states the Survey. On the whole, the power sector saw a sustained expansion in installed capacity by 11.6% to 509.74 GW as of November 2025. India’s Transformation capacity has increased from 38,805 MVA to 60,260 MVA this year, and the gap between energy demand and supply has declined from 4.2% in 2014-15 to nil by November 2025. A legislation — the Electricity (Amendment) Bill, 2026, is in the pipeline in Parliament’s ongoing Budget Session to promote efficiency, competition, and financial discipline in the power sector. Click here to read the Economic Survey 2025-26 The Ministry of Power had already planned a bailout exceeding ₹1 trillion ($12 billion) for debt-ridden State DISCOMs, as reported in October 2025. To receive the funds, States will be required to privatise their utilities and list them on a stock exchange. By divesting 51% of equity, States will get access to a 50-year interest-free loan for the company’s debt. States may either transfer or keep managerial control of the utilities. Follow Economic Survey 2025-26 LIVE The Economic Survey projects that India’s GDP will grow in the range of 6.8 to 7.2% in 2026-27 while domestic inflation remains low at 1.7% for April-December 2025. After this precusor to India’s financial health, Ms. Sitharaman is scheduled to present her ninth consecutive budget speech – a first on Sunday (February 1, 2026) to a joint session of Parliament. Published – January 29, 2026 06:58 pm IST Share this: Click to share on WhatsApp (Opens in new window) WhatsApp Click to share on Facebook (Opens in new window) Facebook Click to share on Threads (Opens in new window) Threads Click to share on X (Opens in new window) X Click to share on Telegram (Opens in new window) Telegram Click to share on LinkedIn (Opens in new window) LinkedIn Click to share on Pinterest (Opens in new window) Pinterest Click to email a link to a friend (Opens in new window) Email More Click to print (Opens in new window) Print Click to share on Reddit (Opens in new window) Reddit Click to share on Tumblr (Opens in new window) Tumblr Click to share on Pocket (Opens in new window) Pocket Click to share on Mastodon (Opens in new window) Mastodon Click to share on Nextdoor (Opens in new window) Nextdoor Click to share on Bluesky (Opens in new window) Bluesky Like this:Like Loading... Post navigation Inside an early education model that prepares hearing-impaired children for life and learning Kerala Budget 2026-27: Cashew sector gets a total outlay of ₹142 crore