Gujarat achieves 5.58% reduction in AT&C losses of state-run DISCOMs over 7 years

New Delhi: The Aggregate Technical and Commercial (AT&C) losses of Gujarat’s state-run DISCOMs have decreased by 5.58% over the past seven years. According to the latest data, the collective AT&C losses have reduced from 16.23% to 10.65%, highlighting significant strides in improving efficiency and minimizing power losses.

Among the state DISCOMs, Dakshin Gujarat Vij Company Limited (DGVCL) reported the most significant improvement, with losses dropping from 10.48% to 1.68%. Similarly, Madhya Gujarat Vij Company Limited (MGVCL) achieved a reduction from 11.81% to 9.29%, while Uttar Gujarat Vij Company Limited (UGVCL) recorded a decline from 11.53% to 9.35%. Paschim Gujarat Vij Company Limited (PGVCL), which serves a larger rural base, saw its AT&C losses decrease from 24.71% to 18.31%, reflecting sustained efforts to address power distribution challenges.

This information was shared by Shripad Naik, Minister of State in the Ministry of Power, in response to a question in the Rajya Sabha during the ongoing winter session of Parliament.

The reply states: For the DISCOMs/Power Departments (PDs) in FY 23, at the National level the Aggregate Technical and Commercial (AT&C) Losses are 15.37%, the Gap between Average Cost of Supply (ACS) and Average Revenue Realised (ARR) i.e. ACS-ARR Gap is Rs. 0.45/kWh, the accumulated losses are Rs 6.48 lakh Cr and the accumulated debt is Rs. 6.84 lakh Cr. The key reasons for revenue losses include delay in tariff orders; poor billing and collection efficiencies; non- implementation of Fuel and Power Purchase Cost Adjustment (FPPCA), under-recovery of electricity dues of State Government departments and the subsidy amounts.

Government of India has been implementing various performance linked and result oriented schemes with the objective to have a financially secure, viable and sustainable power sector (distribution segment in particular). Several interventions have been made to improve financial and operational efficiencies of DISCOMs/PDs by linking to reform measures including Additional Borrowing space of 0.5% of GSDP to States linked to power sector reforms undertaken; introducing additional prudential norms for lending by Power Finance Corporation (PFC) Limited and REC Limited; and Revamped Distribution Sector Scheme (RDSS). Eligibility of States and DISCOMs under all these measures are conditional on their taking steps to improve their operational and financial efficiencies.

In addition, Rules have promulgated for automatic pass through of FPPCA, pass through of all prudent costs incurred by the distribution licensee, timely payments of subsidy by State Governments etc.

These initiatives have been designed to tackle financial and operational issues of DISCOMs/PDs to bring in desired financial discipline in DISCOMs and State Governments.

UDAY was launched with an overall objective of operational and financial turnaround of State owned Distribution Utilities (DISCOMs) through efficiency improvements and financial restructuring in Distribution Sector. Recognising that the liabilities of the State owned utilities are the contingent liabilities of the States themselves, UDAY envisaged States taking over 75% of the debt of the DISCOMs as on 30.09.2015 by issuing State Development Loan (SDL) (State wise details placed at Annexure-I)

As a result of participation of DISCOMs under UDAY and other efficiency measures, State Power Distribution Utilities have reported improvements which include:

AT&C losses have reduced from 70% in FY 2015-16 to 15.37% in FY2023.

ACS-ARR Gap reduced from 0.54/kWh in FY2015-16 to Rs. 0.45/kWh in FY2023. (State wise details placed at Annexure-II)

ANNEXURE-I

ANNEXURE REFERRED IN REPLY TO PARTS (c) & (d) OF UNSTARRED QUESTION NO. 149 ANSWERED IN THE RAJYA SABHA ON 25.11.2024 

(All amounts in Rs Crores)

S No. State Total DISCOM Liabilities as on 30-09-2015 DISCOM

liabilities to be restructured as

per MoU

Total bonds issued under UDAY
1. Andhra Pradesh 14,721 11,008 8,256
2. Assam 1,510 1,510
3. Bihar 3,109 3,109 3,109
4. Chhattisgarh 1,740 1,305 870
5. Haryana 34,602 34,602 25,950
6. Himachal Pradesh 3,854 3,854 2,891
7. J&K 3,538 3,538 3,538
8. Jharkhand 7,215 7,215 6,136
9. Madhya Pradesh 34,739 7,360 7,360
10. Maharashtra 22,097 6,613 4,960
11. Meghalaya 167 167 125
12. Punjab 20,838 20,838 15,629
13. Rajasthan 83,229 83,229 74,790
14. Tamil Nadu 30,420 30,420 22,815
15. Telangana 11,897 11,897 8,923
16. Uttar Pradesh 53,211 53,211 49,510
TOTAL 3,26,887 2,79,876 2,34,862

 

ANNEXURE-II

ANNEXURE REFERRED IN REPLY TO PARTS (c) & (d) OF UNSTARRED QUESTION NO. 149 ANSWERED IN THE RAJYA SABHA ON 25.11.2024

AT&C LOSS (in%)

States/ DISCOMs 2015-16 2022-23
State Sector 23.65 15.78
Andaman & Nicobar Islands 18.61 19.81
Andaman & Nicobar PD 18.61 19.81
Andhra Pradesh 10.36 7.98
APCPDCL 11.46
APEPDCL 7.10 5.94
APSPDCL 12.03 8.08
Arunachal Pradesh 54.58 51.70
Arunachal PD 54.58 51.70
Assam 26.02 16.22
APDCL 26.02 16.22
Bihar 43.30 25.01
NBPDCL 35.73 21.25
SBPDCL 47.87 27.95
Chhattisgarh 22.10 16.14
CSPDCL 22.10 16.14
Delhi 11.76 10.67
NDMC 11.76 10.67
Goa 19.77 11.85
Goa PD 19.77 11.85
Gujarat 16.23 10.65
DGVCL 10.48 1.68
MGVCL 11.81 9.29
PGVCL 24.71 18.31
UGVCL 11.53 9.35
Haryana 29.27 12.01
DHBVNL 26.44 13.17
UHBVNL 32.84 10.32
Himachal Pradesh 9.68 10.57
HPSEBL 9.68 10.57
Jammu & Kashmir 58.75
JKPDD 58.75
Jharkhand 33.34 30.28
JBVNL 33.34 30.28
Karnataka 17.13 13.91
BESCOM 13.88 12.16
CHESCOM 13.60 10.22
GESCOM 18.00 19.26
HESCOM 27.63 18.13
MESCOM 12.71 9.20
Kerala 12.40 7.05
KSEBL 12.40 7.05
TCED 7.46 7.08
Ladakh 30.33
Ladakh PD 30.33
Madhya Pradesh 27.37 20.55
MPMaKVVCL 31.09 22.89
MPPaKVVCL 25.06 12.60
MPPoKVVCL 26.10 27.39
Maharashtra 21.74 18.58
BEST 4.18
MSEDCL 21.74 19.04
Manipur 31.72 13.82
MSPDCL 31.72 13.82
Meghalaya 45.98 23.97
MePDCL 45.98 23.97
Mizoram 35.18 26.27
Mizoram PD 35.18 26.27
Nagaland 33.44 45.81
Nagaland PD 33.44 45.81
Puducherry 22.43 17.49
Puducherry PD 22.43 17.49
Punjab 15.88 11.26
PSPCL 15.88 11.26
Rajasthan 31.59 15.90
AVVNL 27.66 10.00
JdVVNL 29.67 20.99
JVVNL 35.87 15.83
Sikkim 43.89 36.69
Sikkim PD 43.89 36.69
Tamil Nadu 16.83 10.31
TANGEDCO 16.83 10.31
Telangana 14.01 18.65
TSNPDCL 17.41 22.19
TSSPDCL 12.64 17.20
Tripura 32.68 28.15
TSECL 32.68 28.15
Uttar Pradesh 39.76 22.33
DVVNL 43.13 24.04
KESCO 28.16 11.33
MVVNL 44.58 24.22
PaVVNL 27.12 17.02
PuVVNL 51.14 27.27
Uttarakhand 18.01 15.32
UPCL 18.01 15.32
West Bengal 28.08 17.32
WBSEDCL 28.08 17.32
Private Sector 24.58 10.94
Dadra & Nagar Haveli and Daman & Diu 7.95 3.58
DNHDDPDCL 7.95 3.58
Delhi 12.44 7.12
BRPL 12.60 7.16
BYPL 16.76 7.25
TPDDL 8.83 6.98
Gujarat 3.93
Torrent Power Ahmedabad 4.04
Torrent Power Surat 3.69
Maharashtra 6.48
AEML 6.48
Odisha 38.60 21.85
TPNODL 36.32 17.26
TPSODL 44.57 31.32
TPWODL 40.07 20.47
TPCODL 36.51 22.65
Uttar Pradesh 8.36
NPCL 8.36
West Bengal 8.15
CESC 11.6 8.28
IPCL 6.56
Grand Total 23.70 15.37

 

ACS-ARR GAP (in Rs per kWh)

 

States/ DISCOMs 2015-16 2022-23
State Sector 0.57 0.52
Andaman & Nicobar Islands 0 2.20
Andaman & Nicobar PD 0 2.20
Andhra Pradesh 0.80 (0.15)
APCPDCL (0.09)
APEPDCL 0.32 (0.30)
APSPDCL 1.03 (0.06)
Arunachal Pradesh 0.49 0.00
Arunachal PD 0.49 0.00
Assam 0.23 0.62
APDCL 0.23 0.62
Bihar 0.46 0.00
NBPDCL 0.35 0.19
SBPDCL 0.54 (0.15)
Chhattisgarh (0.01) 0.26
CSPDCL (0.01) 0.26
Delhi (0.37) 0.95
NDMC (0.37) 0.95
Goa 0.71 (0.14)
Goa PD 0.71 (0.14)
Gujarat (0.02) (0.02)
DGVCL (0.04) (0.02)
MGVCL 0.01 (0.05)
PGVCL (0.01) (0.01)
UGVCL (0.04) (0.02)
Haryana 0.16 (0.15)
DHBVNL 0.17 (0.19)
UHBVNL 0.15 (0.10)
Himachal Pradesh (0.31) 0.86
HPSEBL (0.31) 0.86
Jammu & Kashmir 3.00
JKPDD 3.00
Jharkhand 0.93 2.45
JBVNL 0.93 2.45
Karnataka 0.33 0.32
BESCOM 0.17 0.30
CHESCOM (0.10) (0.12)
GESCOM 0.35 0.53
HESCOM 0.88 0.83
MESCOM 0.39 (0.56)
Kerala 0.30 0.33
KSEBL 0.30 0.34
TCED 0 (0.08)
Ladakh 2.18
Ladakh PD 2.18
Madhya Pradesh 0.87 (0.20)
MPMaKVVCL 1.20 (0.40)
MPPaKVVCL 0.50 (0.18)
MPPoKVVCL 0.95 (0.02)
Maharashtra 0.43 1.24
MSEDCL 0.43 1.21
BEST 2.25
Manipur 0.02 1.30
MSPDCL 0.02 1.30
Meghalaya 0.82 0.67
MePDCL 0.82 0.67
Mizoram 2.06 1.71
Mizoram PD 2.06 1.71
Nagaland 0.20 (0.32)
Nagaland PD 0.20 (0.32)
Puducherry (0.02) 0.39
Puducherry PD (0.02) 0.39
Punjab 0.53 0.20
PSPCL 0.53 0.20
Rajasthan 1.83 0.20
AVVNL 1.96 0.22
JdVVNL 1.80 0.29
JVVNL 1.77 0.09
Sikkim 2.09 (0.68)
Sikkim PD 2.09 (0.68)
Tamil Nadu 0.67 0.89
TANGEDCO 0.67 0.89
Telangana 0.74 1.40
TSNPDCL 0.88 1.29
TSSPDCL 0.68 1.45
Tripura 0.42 0.60
TSECL 0.42 0.60
Uttar Pradesh 0.29 1.19
DVVNL 0.73 1.79
KESCO (0.07) (0.00)
MVVNL 0.19 1.76
PaVVNL 0.21 (0.25)
PuVVNL 0.08 2.12
Uttarakhand 0.10 0.72
UPCL 0.10 0.72
West Bengal 0.52 0.32
WBSEDCL 0.52 0.32
Private Sector (0.05) (0.19)
Dadra & Nagar Haveli and Daman & Diu 0 (0.14)
DNHDDPDCL 0 (0.14)
Delhi (0.37) (0.03)
BRPL (0.37) 0.03
BYPL 0.23 0.15
TPDDL (0.81) (0.23)
Gujarat (0.50)
Torrent Power Ahmedabad (0.58)
Torrent Power Surat (0.30)
Maharashtra (0.04)
AEML (0.04)
Odisha 0.39 (0.25)
TPNODL 0.34 (0.27)
TPSODL 0.31 0.38
TPWODL 0.22 (0.59)
TPCODL 0.61 (0.06)
Uttar Pradesh (0.79)
NPCL (0.79)
West Bengal (0.18)
CESC 0.59 (0.24)
IPCL 0.53
Grand Total 0.54 0.45