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DISCOMs Report ₹2,701 Cr Profit in FY25; AT&C Losses Drop to 15.04% Under ₹3.03 Lakh Cr RDSS Scheme

Target:UPSC GS-IIIMPSCSSC GATeachingBankingPrelims HighMains HighStatic GK Link
21 Feb 2026
~2 min
Source: The Hindu
Key Data:₹2,701 crore₹54,000 crore15.04%₹3.03 lakh crore22.42 crore0.06 ₹/kWh
Bodies:Power Finance CorporationMinistry of Power16th Finance CommissionNational Smart Grid Mission
Practice MCQs from today's news ▸
What This Article Covers

1.Economic Survey 2025-26 reports DISCOMs' first positive Profit After Tax (PAT) of ₹2,701 crore in FY25, reversing historical losses.

2.Revamped Distribution Sector Scheme (RDSS) with ₹3.03 lakh crore outlay and the 16th Finance Commission's privatisation push are key structural reforms.

3.Examiners will focus on the decline in AT&C losses from 22.62% to 15.04% and the role of RDSS in achieving financial turnaround.

The Big Picture
Prelims · HighMains · High

India's power distribution companies (DISCOMs), once recording losses of ₹54,000 crore in 2015, have turned profitable with a PAT of ₹2,701 crore in FY25. This remarkable turnaround is driven by the Revamped Distribution Sector Scheme (RDSS) and policy measures like monthly fuel cost adjustments and late payment surcharges, crucial for understanding infrastructure reforms.

Exam Lens

Quick Exam Facts From News

DISCOM PAT (FY25)₹2,701 crore
Peak Loss (2015)₹54,000 crore
AT&C Loss (FY25)15.04%
RDSS Outlay₹3.03 lakh crore
Smart Meters Sanctioned22.42 crore

1-Minute Revision

  • ›DISCOM PAT (FY25): ₹2,701 crore
  • ›Peak Loss (2015): ₹54,000 crore
  • ›Target this Data: DISCOM Profit After Tax (PAT) in FY25 was ₹2,701 crore.
  • ›Target this Nodal Body: Power Finance Corporation (PFC) publishes the annual report on DISCOM performance.
  • ›Target this Scheme: Revamped Distribution Sector Scheme (RDSS) with an outlay of ₹3.03 lakh crore (2021-2026).

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which organization publishes the annual performance report of state power distribution utilities (DISCOMs)?

Q2Statement-basedHard

Consider the following statements regarding the financial turnaround of DISCOMs:

1. The Economic Survey 2025-26 reported that DISCOMs recorded a positive Profit After Tax for the first time in FY25.

2. The Revamped Distribution Sector Scheme (RDSS) aims to reduce AT&C losses to below 10% by the end of FY 2025-26.

3. The reduction in outstanding dues of DISCOMs to generating companies is solely attributed to the Ujwal DISCOM Assurance Yojana (UDAY).

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, what was the total outlay approved for the Revamped Distribution Sector Scheme (RDSS)?

Q4Application/ImpactMedium

What is a key recommendation of the 16th Finance Commission report, as mentioned in the article, regarding the future of state DISCOMs?

All 25 MCQs ▸
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