Coal shortage, state dues, higher salaries behind losses at discoms


Coal shortage, state dues, higher salaries behind losses at discoms

Shortage of coal at power plants, inadequate tariff hikes and rising operational costs after the 7th Pay Commission have been putting additional pressure on already hard-pressed electricity distribution companies (discoms).

In a review meeting recently held here to map the progress of various schemes under the Union power ministry, discom officials also blamed the late subsidy disbursal of state governments for their increasing woes.

At the end of the first half of FY19, all India aggregate technical and commercial (AT&C) losses — an indicator of losses due to pilferage and billing inefficiencies — stood at 22%, rising from 18.6% at FY18-end and making it nearly impossible to achieve the target of reducing them to under 15% by March under the Ujwal Discom Assurance Yojana (UDAY).

These losses, one of the primary reasons for the discoms being perennially in the red, were the highest in Bihar (38.9%), Read More

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