NEW DELHI: Losses of distribution companies (discoms) have declined by 38% to Rs 38,000 crore in FY20 from Rs 61,360 crore in FY19 as reforms initiated by the Centre reduced line losses and gradually brought about improvement in operations, power minister R K Singh said on Friday.
Releasing the ninth annual rating of discoms, Singh said the average gap between the cost of power and revenue realisation of the utilities has also narrowed to 38 paise per unit from 42 paise during the period.
All the four discoms in Gujarat and one in Haryana — Dakshin Haryana Bijli Vitran Nigam — were given A+ ranking by the report prepared by state-run power sector lender PFC. Altogether eight discoms across Andhra Pradesh, Rajasthan, Meghalaya, Jharkhand, Manipur, Tripura and Tamil Nadu were given C, or the lowest rating.
Underlining the importance of the ranking, Singh said a fair and accurate assessment of the true position of the distribution sector will help in assessing and improving its performance. “This will also assist state governments, lending institutions and other stakeholders to take important decisions,” he said. The rankings have a bearing on the discoms’ ability and cost of borrowings.
