Power sector PSUs in Delhi posted higher profits, says CAG

New Delhi: An audit report by the Comptroller and Auditor General (CAG) of India said on Wednesday that power sector PSUs in Delhi earned Rs 121 crore more in profit in financial year 2017-18 as compared to 2013-14. Delhi Transco & Pragati Power Corporation Limited was the top profit-making company in the list, the report showed.

Delhi power sector PSUs earned profit of Rs 879.7 cr

The CAG report said that the power sector PSUs in Delhi earned a profit of Rs 879.7 crore in 2017-18 against Rs 759 crore in 2013-14. According to the latest financial reports, out of five power sector PSUs in Delhi, four have earned a profit.

The top profit-making companies were Delhi Transco (Rs 627.2 crore) and Pragati Power Corporation Limited (Rs 211.4 crore). The net worth was eroded completely in Delhi Power Company Limited (-Rs 779.1 crore).

The CAG audit also showed that in the past five years, the turnover of the five power sector PSUs had recorded a compounded annual growth of 2.8 percent and a 7 percent (approx) compounded annual decline in debt.

PSUs expected to yield reasonable return on investment

"The public sector undertakings are expected to yield reasonable return on investment made by the government in the undertakings. The amount of investment in the five power sector PSUs as on March 31, 2018 was Rs 12,740.46 crore consisting of Rs 7,506.79 crore as equity and Rs 5,233.67 crore as long term loans. Out of this, GNCTD has investment of Rs 10,618.17 crore in four power sector undertakings (except in DSIIDC Energy Limited), consisting of equity of Rs 7,106.78 crore and long-term loans of Rs 3,511.39 crore," the CAG report said.