High AT&C losses, modest tariff hikes continue to strain India’s power distribution sector
India’s power distribution sector remains under significant financial pressure due to persistently high aggregate technical and commercial (AT&C) losses and insufficient tariff hikes. A recent report by ICRA highlights that despite some progress, state-owned distribution companies (discoms) continue to struggle with balancing costs and revenues, particularly in states like Bihar, Jharkhand, Madhya Pradesh, Odisha, and Uttar Pradesh, where AT&C losses exceed 20%. Nationally, AT&C losses have seen a reduction, dropping from 23% in FY2021 to…