States asked to submit green energy corridor proposals, complete prepaid metering by 2025
New Delhi: The Union government on Friday urged southern states to submit proposals for Phase-III of the Green Energy Corridor (GEC) and complete the installation of
prepaid smart meters
in government establishments by August 2025, and in commercial and high-load consumer categories by November 2025. The directions were issued at the Regional Conference for Southern Region States and Union Territories held in Bengaluru.
The meeting was chaired by Union Minister for Power and Housing & Urban Affairs Manohar Lal and attended by Union Minister of State for Power and New &
Renewable Energy
Shripad Naik, Karnataka Energy Minister K J George, Telangana Deputy Chief Minister and Energy Minister Bhatti Vikramarka Mallu, Tamil Nadu Electricity Minister S S Sivasankar, Puducherry Electricity Minister A Namassivayam, and Andhra Pradesh Energy Minister Gottipati Ravi Kumar via video conferencing.
The Power Secretary highlighted the importance of planning power generation capacity in line with the resource adequacy plan up to FY2035 and called for infrastructure development using financing options such as Tariff Based Competitive Bidding, Regulated Tariff Mechanism, budgetary support, or asset monetisation. States were also asked to implement cyber security protocols and ensure financial health of distribution companies.
Karnataka's Energy Minister requested central support for state-level distribution and transmission projects. Telangana, Tamil Nadu, and Puducherry outlined their initiatives and progress on
power sector development
.
Union Minister of State Shripad Naik asked states to execute PM-KUSUM projects and sign related Power Purchase Agreements within seven months. He assured that the Centre is acting on the feedback received from states.
Union minister Manohar Lal emphasised the need for cooperation between the Centre and states to make the power sector financially sustainable. He called for encouraging energy-efficient practices, resolving intra-state transmission issues including Right of Way constraints, and adopting central guidelines.
The minister urged states to use the ₹1.5 lakh crore, 50-year interest-free loan scheme announced in Union Budget 2025–26 for infrastructure development. He highlighted the role of renewable energy with storage in ensuring energy reliability and fulfilling India's global climate commitments.
On the distribution side, the Minister cited challenges such as poor tariff structures, billing inefficiencies, and delays in subsidy payments. He asked states to engage with electricity regulators for cost-reflective tariffs and timely orders.
The minister also directed the completion of prepaid smart meter rollout in government buildings by August 2025 and for commercial and high-load users by November 2025. He said smart meters could improve efficiency and transparency using analytics-based tools.
He assured states of continued central government support in strengthening the power sector.
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