Power Distribution Sector Turns Profitable as 14th Integrated Rating Is Released

New Delhi: The 14th edition of the Annual Integrated Rating of Power Distribution Utilities, covering 65 power distribution utilities across India, was released on January 23, 2026, at the Chintan Shivir by the Hon’ble Minister of Power and Housing & Urban Affairs, Shri Manohar Lal.

The release took place in the presence of the Hon’ble Minister of State for Power and New & Renewable Energy, Shri Shripad Naik, along with Secretary, Ministry of Power, Shri Pankaj Agarwal, and senior officials from the Ministry of Power and various State Governments.

The latest rating report marks a significant turnaround for India’s power distribution sector, which has reported a positive Profit After Tax (PAT) of ₹2,701 crore for the first time in several years. The report also highlights notable improvements in key financial and operational indicators, including a reduction in the Average Cost of Supply–Average Revenue Realised (ACS-ARR) gap and Aggregate Technical & Commercial (AT&C) losses compared to the previous year.

Commenting on the milestone, Union Power Minister Shri Manohar Lal said that the achievement signals the beginning of a new chapter for the power distribution sector. He noted that the improved performance reflects the outcome of sustained reforms and focused efforts undertaken to address long-standing structural and financial challenges faced by distribution utilities across the country.

The Power Finance Corporation (PFC), which serves as the nodal agency for conducting the Integrated Rating Exercise, reaffirmed its commitment to supporting India’s power sector. PFC emphasized its continued role in providing policy support, financial assistance, and institutional strengthening, aimed at improving the operational efficiency and financial sustainability of power distribution utilities nationwide.