Centre And North Eastern States Discuss Power Sector Challenges And Solutions In Gangtok

Representational image. Credit: Canva

The Regional Conference of the Power Sector with the North Eastern States was held on 26th April in Gangtok, Sikkim. The event saw the presence of Shri Prem Singh Tamang, Hon’ble Chief Minister of Sikkim, and Shri Manohar Lal, Hon’ble Union Minister of Power and Housing & Urban Affairs. Several other dignitaries attended, including Shri Ratan Lal Nath, Minister of Power, Tripura; Shri A T Mondal, Minister of Power, Meghalaya; Shri F. Rodingliana, Minister of Power, Mizoram; Shri Jikke Tako, MLA and Advisor for Power, Arunachal Pradesh; and Shri Sanjeet Kharel, MLA and Advisor, Sikkim. The meeting also included the Union Power Secretary, State Secretaries of Power and Energy, CMDs of central and state power utilities, and senior officers from the Ministry of Power.

In his address, Shri Manohar Lal emphasized the importance of building a future-ready, modern, and financially viable power sector to support India’s goal of becoming a developed nation. He underlined that power plays a crucial role in achieving the vision of Viksit Bharat. The Minister noted that the regional conference would help identify the specific challenges faced by the North Eastern States and find targeted solutions. He mentioned that although the gap in meeting current power demand is very small at 0.1%, continuous efforts are needed to prepare for future requirements.

Shri Manohar Lal shared that since 2014, India has seen a significant rise in power generation across thermal, hydro, atomic, and renewable sources. He stressed the need to continue developing non-fossil power sources to meet the Net Zero Emissions target. He spoke about how government schemes like RDSS and PM-JANMAN are helping to address issues in the power distribution sector, including the electrification of left-out households.

The Minister pointed out that the distribution sector faces serious challenges such as poor tariff structures, inefficiencies in billing and collection, and delayed payments from government departments. He stressed the need to reduce Aggregate Technical and Commercial (AT&C) losses and close the gap between the Average Cost of Supply and Average Revenue Realised. To make the distribution sector financially strong, tariffs need to reflect actual costs. He also emphasized the importance of implementing works under RDSS, especially Smart Metering Works, which would improve the operational efficiency of utilities. He suggested prioritizing prepaid smart metering for government establishments and colonies.

Shri Manohar Lal also urged states to work towards energy security and to utilize the North Eastern region’s hydropower and pumped-storage potential effectively.

The Secretary (Power), Government of India, highlighted the urgent need for capital investment to meet the rising power demand and push for modernization reforms. He emphasized that power projects have long gestation periods, so states must plan and secure their power requirements under the resource adequacy plan up to FY2030 as soon as possible. He also mentioned the importance of planning for intra-state transmission needs through models like tariff-based Competitive Bidding, Regulated Tariff Mechanisms, budgetary support, or asset monetization. He asked states to plan carefully to meet summer power demand.

The Hon’ble Chief Minister of Sikkim welcomed the delegates and outlined the steps the state has taken to improve the quality and reliability of its power supply. He also shared Sikkim’s plans for further power sector development and requested support from the central government for pending issues. The participating states thanked the Hon’ble Union Minister for the special focus on the North Eastern region and requested continued support from the Government of India to strengthen the power infrastructure in the area.

 

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