Bihar’s Power Sector Surges Ahead With Record Loss Reduction and Revenue Growth

Patna: In a landmark achievement for Bihar’s power sector, the state’s two electricity distribution companies have together slashed power losses to their lowest ever level — a development that marks a pivotal moment in Bihar’s long journey from energy deficit to greater self-reliance.

For the first time, Bihar’s aggregate technical and commercial (AT&C) losses have dipped below the national average of all power distribution companies (DISCOMs), settling at 15.5% in FY 2024–25, down from 19.94% the previous year. The two utilities at the heart of this transformation — North Bihar Power Distribution Company Ltd. (NBPDCL) and South Bihar Power Distribution Company Ltd. (SBPDCL) — have recorded individual losses of 14.5% and 17% respectively.

The achievement is particularly significant in a state where, just two decades ago, power theft, poor billing systems, and decaying infrastructure plagued the sector. In 2004–05, Bihar’s AT&C losses stood at a staggering 59.15%. The sharp decline is testament to a sustained overhaul of systems, infrastructure, and public accountability.

“This is not just a statistic — it’s a symbol of Bihar’s intent,” said Bijendra Prasad Yadav, the state’s energy minister. “Under the visionary leadership of Chief Minister Nitish Kumar, Bihar has moved from being power-starved to performance-driven. This milestone reflects our deep commitment to transparency, reform, and ensuring every household in Bihar receives reliable electricity.”

Rewiring Trust and Infrastructure

The turnaround has not happened overnight. DISCOM officials credit the improvement to a series of targeted initiatives — from timely release of new service connections and improved billing accuracy, to rapid grievance redressal and expanded infrastructure under the Revamped Distribution Sector Scheme (RDSS).

“These aren’t just cosmetic fixes. There’s been a cultural shift within the system,” said Pankaj Pal, Energy Department Secretary and CMD of Bihar State Power Holding Company Ltd. (BSPHCL). “To bring down AT&C losses by nearly 5% in a single year — especially when more than 85% of our consumers live in rural areas — is nothing short of extraordinary.”

The investment in technology and system strengthening has also helped bolster trust. Consumers are seeing fewer outages, more reliable metering, and quicker complaint resolution — all of which have helped improve revenue realisation.

Recognition and Results

That consumer-first approach has not gone unnoticed. In the latest Consumer Service Ratings issued by the Union Ministry of Power, NBPDCL earned an ‘A’ rating, while SBPDCL was awarded ‘B+’, indicating strong strides in customer satisfaction and operational efficiency.

The financials tell a similar story. Together, the two DISCOMs collected a record Rs 17,114 crore in FY 2024–25, up from Rs 15,109 crore the previous year — a 13% jump that reflects both growing consumer compliance and institutional discipline.

Building on Momentum

Officials say the road ahead involves consolidating gains and expanding reach — especially to far-flung areas where infrastructure gaps persist. Digital metering, AI-based fault detection systems, and more consumer-centric innovations are expected in the next phase of Bihar’s power reforms.

“We’re not celebrating just yet,” Pal added. “We know this success has to be sustained — and built upon. Consumers are at the heart of our mission. Their trust is our biggest asset.”

For a state that once symbolised India’s uneven development, Bihar’s power story is fast becoming a blueprint for transformation — one kilowatt at a time.