Gujarat achieves 5.58% reduction in AT&C losses of state-run DISCOMs over 7 years
November 28, 2024
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 |
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