Days after both Haryana power distribution companies posted a profit after a gap of nearly 15 years supported by the Ujwal DISCOM Assurance Yojana (UDAY), the stressed discoms of other states too are on a path of recovery.
Days after both Haryana power distribution companies posted a profit after a gap of nearly 15 years supported by the Ujwal DISCOM Assurance Yojana (UDAY), the stressed discoms of other states too are on a path of recovery. The two Gujarat discoms, Uttar Gujarat Vij Company Ltd, Daskshin Gujarat Vij Company Ltd and two Uttarakhand power distribution companies namely Uttarakhand Power Corporation Ltd, and Pashchim Gujarat Vij Ltd secured the top grade A+ in the rankings prepared by government-owned Power Finance Corporation in association with ICRA and CARE, PTI reported.
The report titled ‘State Distribution Utilities Sixth Annual Integrated Ratings’ was released on Tuesday by Power Minister R K Singh. It ranked 41 state utilities on the basis of aggregate technical and commercial losses (AT&C), billing efficiency and financial parameters.
Power distribution companies of Gujarat and Uttarakhand scored A+ in the rankings in the rankings of discoms for 2016-17, the report said. In case of utilities which performed well, there was considerable improvement in AT&C loss levels during cost coverage in FY 2017 led by higher tariff realisation and reduced supply cost, PTI reported.
In the lowest grade C, the power utilities of Tripura, Manipur, Uttar Pradesh, Meghalaya and Jharkhand were placed Uttar Pradesh’s Kanpur Electricity Supply Company was placed in grade B as it performed better than its state peers.
The two Dakshin Haryana Bijli Vitaran Nigam (DHBVN) and Uttar Haryana Bijli Vitran Nigam (UHBVN) 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 UDAY 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 percent, as per latest data on UDAY portal.