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State-Owned Power Utilities Gear Up for Public Listings and Monetisation Push

Public listings of state-owned power utilities are gaining momentum, with several states—including Gujarat, Chhattisgarh, and Haryana—actively preparing to list their transmission and generation companies. Gujarat Energy Transmission Company (Getco) has initiated the process by drafting its red herring prospectus, while Chhattisgarh and Haryana have proposed the listing of multiple utilities. This move follows Union Power Minister M.L. Khattar’s 2024 call for profit-making power entities to go public, starting with transmission companies due to their relatively stronger financial health compared to loss-making discoms.

Currently, discoms are burdened with Rs6.84 trillion in cumulative debt and Rs16.46 trillion in accumulated losses. The cost-revenue gap was Rs0.21 per kWh in FY24, which the Centre aims to reduce to zero. While listing discoms remains challenging, some states like Uttar Pradesh are exploring PPP models to improve performance and attract private investment, with Tata Power expressing interest in managing two of its discoms.

Besides listings, states are also considering monetisation models such as the Infrastructure Investment Trust (InvIT) structure for transcos. A 2023 panel in Tamil Nadu had recommended similar alternative financing strategies to make utilities more self-sustaining. Andhra Pradesh, however, has withdrawn from listing plans for now. The broader aim is to enhance state utility finances through market-oriented reforms and asset monetisation.