From power deficit to power-sufficient: India reaches 520.51 GW installed capacity

India has successfully transitioned from a power deficit to a power-sufficient nation, with its installed power generation capacity reaching 520.51 GW, according to the Ministry of Power's written reply in the Lok Sabha on Thursday. 

The government has addressed the long-standing issue of power deficiency by adding 296.388 GW of new generation capacity since April 2014, the ministry said. This expansion has enabled the country to meet its energy requirements, with only a marginal gap that is primarily attributed to constraints within the state transmission and distribution networks.

The Ministry emphasised that electricity supply and distribution fall under the jurisdiction of individual states and Union Territories (UTs), with local power utilities responsible for ensuring adequate power availability. While the central government has played a pivotal role in increasing generation capacity, the delivery of power to various consumers and regions depends on the operational efficiency of state utilities and their coordination with the national grid.

The government also highlighted the Revamped Distribution Sector Scheme (RDSS), launched in July 2021, as a key initiative to address inefficiencies in power distribution. The scheme aims to reduce Aggregate Technical and Commercial (AT&C) losses, which have decreased from 21.91% in FY21 to 15.04% in FY25. It also focuses on reducing the gap between the Average Cost of Supply (ACS) and Average Revenue Realized (ARR) to zero, thereby improving the financial health of distribution companies (DISCOMs).

Under the RDSS, the government has sanctioned Rs 1.53 lakh crore for strengthening distribution infrastructure and Rs 1.3 lakh crore for smart metering projects. These efforts include the creation of new substations, upgrading distribution transformers, and implementing underground lines to enhance the distribution network. Additionally, the RDSS initiative has seen the installation of 4.55 crore smart meters, with plans to cover 19.79 crore consumers in total.

For the state of Assam, specific projects worth Rs 3,395 crore for infrastructure development and Rs 4,050 crore for smart metering have been sanctioned. These efforts have helped the Assam Power Distribution Company Limited (APDCL) reduce AT&C losses and narrow the ACS-ARR gap.

The collective efforts of both central and state governments have also resulted in a significant improvement in the financial performance of DISCOMs, which have reported a profit after tax (PAT) of Rs 2,701 crore for the first time. This marks a turning point for India’s power sector, which has long struggled with inefficiencies in distribution and payment collections.