Reforms have led to increase in power supply and reduction in power distribution losses and losses of discoms

• Radiance News Service
• 19 Dec, 2023
• Delhi
• PowerSectorReforms,RK Singh

The Union Minister for Power and New & Renewable Energy has informed that as a result of the reform measures undertaken by Government of India, the Aggregate Technical & Commercial (AT&C) losses which were 25.72% in FY 2014-15 have come down to 15.41% (provisional) in FY 2022-23. As a result of the measures taken, the availability of power supply in rural areas has increased from 12.5 Hours in 2015 to 20.6 Hours in 2023. The power supply in urban areas has increased to 23.78 Hours in 2023.

This reduction in losses in the distribution sector is as a result of a number of reforms and measures taken by the Government which include:

(i)       Putting in place Rules to ensure payment for any subsidy declared by Government in time.

(ii)      Ensuring that the tariffs are up to date.

(iii)     Reducing the Legacy dues of GENCOs, under Late Payment Surcharge Rules, which have come down substantially from around Rs. 1.40 lakh Cr. to around 0.52 lakh Cr.

(iv)     Ensuring that the GENCOs are paid on time.

(v)      Ensuring Energy Accounting and Energy Audit.

(vi)       Putting in place revised Prudential Norms providing that no DISCOM or GENCO of a State Government will be able to get loans from PFC / REC if the DISCOM is making a loss, unless the DISCOM, with the approval of the State Government, works out a plan for loss reduction and files it with the Central Government, and adheres to that loss reduction trajectories.

(vii)      Putting in place an incentive of an additional borrowing space of 0.5% of GSDP if the DISCOM puts in place loss reduction measures.

(viii)   The distribution system has been strengthened with an expenditure of 1.85 lac crore adding 2927 new sub-stations and upgrading 3965 existing sub-stations. 6,92,200 Distribution Transformers have been installed, Feeder separation of 1,13,938 Circuit Kilometer (CKm) has been done and 8.5 Lakh Circuit Kilometer (Ckm) of HT and LT lines have been added/changed, covered wire in high loss areas were provided, works like Gas insulated substation, underground cabling, aerial bunched cable etc. were taken up. Further, Government of India has approved Revamped Distribution Sector Scheme (RDSS) on 30.06.2021 with an outlay of Rs. 3,03,758 crores and Gross Budgetary Support of Rs. 97,631 crores over a period of five years from FY 2021-22 to FY 2025-26. Under RDSS, DPRs of Loss Reduction works having total outlay of Rs. 1,21,778 Crores (GBS: Rs. 77,920 Cr) have been sanctioned till date.

(ix)     Providing that loss making DISCOMs will not be able to draw funds under any Power Sector Scheme of GoI unless they put in place measures for loss reduction.

As per the 'Report on Performance of Power Utilities' published annually by Power Finance Corporation Ltd. (PFC), Financial Losses of distribution utilities have also come down from Rs. 46,521 crore in FY 2020-21 to Rs. 31,026 crore in FY 2021-22.  The State-wise and Utility-wise details are given below.

 State-wise and utility-wise details of Profit / (Loss) on accrual basis (PAT) (Rs. crore)

	2020-21	2021-22
State Sector	(51,750)	(34,519)
Andaman & Nicobar Islands	(757)
Andaman & Nicobar PD	(757)
Andhra Pradesh	44	(2,458)
APCPDCL	3	(801)
APEPDCL	40	397
APSPDCL	2	(2,054)
Arunachal Pradesh	-	(503)
Arunachal PD	-	(503)
Assam	(292)	336
APDCL	(292)	336
Bihar	(2,523)	(2,217)
NBPDCL	(1,212)	(930)
SBPDCL	(1,312)	(1,288)
Chandigarh	79	(101)
Chandigarh PD	79	(101)
Chhattisgarh	(420)	(1,214)
CSPDCL	(420)	(1,214)
Dadra & Nagar Haveli  and Daman & Diu	242	148
Daman & Diu PD	12	42
DNHPDCL	230	106
Goa	(104)	(264)
Goa PD	(104)	(264)
Gujarat	429	373
DGVCL	126	95
MGVCL	56	103
PGVCL	172	97
UGVCL	74	78
Haryana	637	849
DHBVNL	240	179
UHBVNL	397	670
Himachal Pradesh	(185)	(104)
HPSEBL	(185)	(104)

 

Jammu & Kashmir	(3,274)
JKPDD	(3,274)
Jharkhand	(2,200)	(2,088)
JBVNL	(2,200)	(2,088)
Karnataka	(4,175)	(4,592)
BESCOM	208	(2,920)
CHESCOM	(723)	(423)
GESCOM	(1,117)	11
HESCOM	(2,490)	(1,294)
MESCOM	(53)	33
Kerala	(475)	736
KSEBL	(475)	736
Ladakh		(11)
Ladakh PD		(11)
Lakshadweep	(117)
Lakshadweep ED	(117)
Madhya Pradesh	(4,152)	(3,119)
MPMaKVVCL	(1,450)	(258)
MPPaKVVCL	52	(2,244)
MPPoKVVCL	(2,754)	(618)
Maharashtra	(1,607)	(329)
MSEDCL	(1,322)	280
BEST	(286)	(609)
Manipur	(15)	(11)
MSPDCL	(15)	(11)
Meghalaya	(101)	(153)
MePDCL	(101)	(153)
Mizoram	(357)	(343)
Mizoram PD	(357)	(343)
Nagaland	(528)	(519)
Nagaland PD	(528)	(519)
Puducherry	(8)	75
Puducherry PD	(8)	75
Punjab	1,446	1,069
PSPCL	1,446	1,069
Rajasthan	(2,217)	(472)
AVVNL	176	558
JdVVNL	(1,732)	(1,465)
JVVNL	(661)	436
Sikkim	(34)	0
Sikkim PD	(34)	0
Tamil Nadu	(13,407)	(11,955)
TANGEDCO	(13,407)	(11,955)

 

 

Telangana	(6,686)	(831)
TSNPDCL	(2,440)	(204)
TSSPDCL	(4,246)	(627)
Tripura	10	(102)
TSECL	10	(102)
Uttar Pradesh	(10,660)	(6,492)
DVVNL	(2,252)	(2,958)
KESCO	(172)	(215)
MVVNL	(896)	(2,042)
PaVVNL	(3,736)	(699)
PuVVNL	(3,604)	(578)
Uttarakhand	(152)	(21)
UPCL	(152)	(21)
West Bengal	(190)	(205)
WBSEDCL	(190)	(205)
Private Sector	5,229	3,493
Delhi	4,858	1,047
BRPL	2,718	385
BYPL	1,712	223
TPDDL	428	439
Maharashtra	337	1,228
AEML	208	1,080
TPML	129	148
Odisha	(909)	236
TPNODL		74
TPSODL	22	69
TPWODL	(1)	64
TPCODL	7	29
NESCO Utility	(123)
SOUTHCO Utility	(431)
WESCO Utility	(383)
CESU
Uttar Pradesh	101	150
NPCL	101	150
West Bengal	841	832
CESC	814	816
IPCL	27	16
Grand Total	(46,521)	(31,026)

 

This information has been given by the Union Minister for Power and New & Renewable Energy R. K. Singh, in a written reply to a question, in Rajya Sabha on December 19, 2023.