New Delhi: Power Minister RK Singh said on Friday that the losses of power distribution companies (DISCOMs) have dropped sharply by around 38 percent from Rs 61,360 crore in FY19 to Rs 38,000 in FY20. Launching the Ninth Annual Integrated Rating for State Power Distribution Utilities, Singh added that the ACS-ARR gap (the gap between average cost of supply of power and average realisable revenue) has also come down from 52 paise per unit to 32 paise per unit. Unveiling the report, the minister said that the Indian power sector will beneﬁt from a fair and accurate assessment of the true position of the distribution sector, which in turn 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. He also congratulated A+ & A category DISCOMS who have performed well and urged upon other utilities to perform better and improve their ratings next time.
According to the 9th Annual Integrated Rating of DISCOMs & DISCOM Performance during FY19-20, all four DISCOMs of Gujarat and one DISCOM in Haryana have been ranked among the top five. These discoms are — Uttar Gujarat Vij Company Ltd, Madhya Gujarat Vij Company Ltd, Dakshin Gujarat Vij Company Ltd, Paschim Gujarat Vij Company Ltd, and Dakshin Haryana Bijli Vitran Nigam Ltd.
The worst performing discoms (C rating) were — Eastern Power Distribution Company of AP Ltd, Jaipur Vidyut Vitran Nigam Ltd, Meghalaya Power Distribution Corporation Ltd, Jharkhand Bijli Vitran Nigam Ltd, Manipur State Power Distribution Company Ltd, Tripura State Electricity Corporation Ltd, Tamil Nadu Generation and Distribution Corporation and Jodhpur Vidyut Vitran Nigam Ltd. The ratings were given on the basis of an evaluation of DISCOMs' performance for parameters like operational, financial, regulatory and reform measures. The survey covered 41 discoms across 22 states. The annual exercise is undertaken to help banks and financial institutions assess risk while lending to DISCOMs.
"The operational and reform parameters viz. AT&C Losses, Efficiency of Power Purchase cost, Corporate Governance, etc. carry weightage of 43 percent. The financial parameters viz. cost coverage ratio, payables, receivables, timely submission of audited accounts, etc. carry weightage of 42 percent. External parameters relating to regulatory environment, State Govt. subsidy support, etc. have been assigned weightage of 15 percent," said the report.
Addressing state-run Power Finance Corporation's (PFC) top management on its 35th Foundation Day, the Minister congratulated PFC on completing its 35 glorious years in the service of the nation. He said that PFC has become a leading NBFC and a key player in financing the Indian Power Sector. He further added that PFC will be an instrumental strategic partner in government reform schemes for power sector such as Rs 3.03 lakh crore 'Reforms-based and Results-linked, Revamped Distribution Sector Scheme,' Atmanirbhar DISCOM package, etc. He further added that PFC as a dedicated financial institution for power sector has the required expertise in funding the power sector. He appreciated PFC for being on a path of rapid development and growth.
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