Under Narendra Modi government's rescue scheme, UDAY, now both Haryana power distribution companies have posted a profit after a gap of about 15 years.
Under Narendra Modi government’s rescue scheme, UDAY, now both Haryana power distribution companies have posted a profit after a gap of about 15 years. Both Dakshin Haryana Bijli Vitaran Nigam (DHBVN) and Uttar Haryana Bijli Vitran Nigam (UHBVN) have posted a combined profit of Rs 115 crores, nearly two-and-a-half years after the ambitious Ujwal DISCOM Assurance Yojana (UDAY) financial rescue scheme was launched.
In December 2016, Dakshin Haryana Bijli Vitaran Nigam became the first discom to post a profit of over 200 crore in the first half of the financial year 2015-16 under the scheme. The government aims to make every discom profitable before 2019. However, the aggregate technical and commercial (AT&C) losses of discoms in 24 states were 18.99%, as per latest data on UDAY portal on Friday. Haryana chief minister Manohar Lal Khattar congratulated both the discoms on Twitter for turning profitable.
— Haryana DISCOMs (@PowerHaryana) June 7, 2018
An initial assessment of UDAY by rating agency Ind-Ra said suggested that both financial outcome, average revenue realisation, and operational efficiency of states that joined the scheme have improved at an aggregate level. However, aggregate performance masked wide inter-state variations, the report released last year noted.
“In the medium-to-long-term, an improvement in operational performance such as increased billing efficiency through feeder metering and feeder audit leading to the higher collection will be crucial for keeping the discoms’ finances healthy,” Ind-Ra said.
So far, discoms in Gujarat, Chattisgarh and Haryana have turned profitable. The success of UDAY lies in “how quickly discoms of larger states such as Uttar Pradesh, Maharashtra, Tamil Nadu, among others turn around and make their finances self-sustainable”, Ind-Ra noted. Analysts expect visible improvements in the financial health of select distribution companies in the fiscal year 2019.
Andhra Pradesh, Himachal Pradesh, Maharashtra and Gujarat discoms were top five performers as on March 31, 2018. Haryana discoms ranked ninth based on several indicators laid down by the scheme including financial and operational indicators.