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Gujarat's power sector interventions as a blueprint for revitalizing India's DISCOMs

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  • Shivahare, Jai Prakash

Abstract

Affordable, reliable and sustained availability of electricity is now a necessity for economic growth, yet India's distribution utilities continue to face persistent financial and operational stress despite wider power sector reforms. Within this dismal picture of failed distribution reforms lies the success story of the outliers. The distribution utilities in the state of Gujarat have outperformed the rest of the country, despite facing the same fundamental issues that affect distribution utilities nationwide. This study identifies several approaches adopted by Gujarat utilities that differ fundamentally from those of other states. The analysis finds that by leveraging investments in transmission and distribution infrastructure, digital platforms, and driving a self-reinforcing cycle of strategic administrative reforms that enhance efficiency and reliability, the state has achieved its goal — delivering affordable and reliable electricity through a viable state-run distribution utility. These insights enable the extraction of valuable lessons that other distribution utilities can adopt to overcome their current financial and operational vulnerabilities and move toward a more sustainable, efficient power distribution system.

Suggested Citation

  • Shivahare, Jai Prakash, 2026. "Gujarat's power sector interventions as a blueprint for revitalizing India's DISCOMs," Utilities Policy, Elsevier, vol. 101(C).
  • Handle: RePEc:eee:juipol:v:101:y:2026:i:c:s0957178726001001
    DOI: 10.1016/j.jup.2026.102241
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