India, May 25 -- India's power distribution companies (discoms), once the weakest link in the country's electricity system, achieved a historic milestone -- they recently posted a profit of Rs.2,701 crore in FY 2024-25. This was the first time since Independence that discoms had such a showing. Just a year earlier, they were Rs.25,553 crore in the red, and losses stood at a staggering Rs.67,962 crore in FY 2013-14. How has this remarkable turnaround come about? It results from sustained, targeted reforms by the Narendra Modi-led government, routed through the ministry of power. These interventions addressed entrenched problems such as delayed payments, cost mismatches, high losses, and poor metering, creating interlocking improvements across the sector. Two core metrics highlight the progress: The first is the dramatic narrowing of the "cost-recovery gap" - from a loss of Rs.0.78 per unit in FY 2013-14 to just Rs.0.06 per unit in FY 2024-25. The second is the significant reduction in aggregate technical and commercial (AT&C) losses - from 22.62% in FY 2013-14 to 15.04% in FY 2024-25. Apart from this, payment discipline has also improved, with the average payment cycle dropping from 178 days in FY 2020-21 to 113 days in FY 2024-25. Legacy arrears reported by 13 states fell sharply from Rs.1,39,947 crore in 2022 to just Rs.4,109 crore by February 10, 2026. What are the key interventions driving the turnaround? Among others, the Electricity (Late Payment Surcharge) Rules, 2022, Electricity (Amendment) Rules, 2022 for monthly fuel cost adjustments, the Revamped Distribution Sector Scheme (RDSS) that saw smart metering for nearly 20 crore consumers (3.9 crore installed by December 2025), and performance-linked incentives allowing states additional borrowing space of up to 0.5% of GDP for reforms, stand out. This turnaround is also historic given how it has moved the power sector from an era of blackouts to record stability. The distribution reforms listed earlier are part of a larger transformation. India has moved from the world's largest blackout in July 2012 - which plunged over 60 crore people across 20 states into darkness - to remarkable grid stability. On April 24, 2026, the country met a record 256 GW power demand without any grid failure, with solar contributing close to 22% during peak hours. Installed power capacity has reached 520.51 GW (January 2026), while the power shortage declined from 4.2% in FY 2013-14 to just 0.03% in FY 2025-26 (till December 2025). Near-universal household electrification was achieved by 2021 through an investment of Rs.1.85 lakh crore, electrifying 18,374 villages and connecting 2.86 crore households. Rural electricity supply has also seen dramatic improvement, from an availability of 12.5 hours/day in 2014 to 22.6 hours in 2025, while urban supply now clocks 23.4 hours. Non-fossil power capacity has grown by 180% since 2014. On the record day (April 24, 2026), solar alone contributed 60.5 GW, with the larger renewables basket (solar + hydro + wind) providing over 76 GW and their share in meeting peak demand rising from 10.9% in 2023 to 15.4% in 2025. This certainly is no small achievement, and more so considering the pace of renewable generation growth over the last decade. From crippling blackouts and daily outages to record demand met with stability and near round-the-clock supply, India's power sector has been fundamentally rewritten. Sustained reforms, smart metering, renewable integration, and strong grid infrastructure have delivered what was once unimaginable: Reliable electricity for all. What is needed now is continued state cooperation and deeper reforms that will ensure that the progress made over the last decade achieves its own momentum and becomes a permanent feature of the country's power sector....