Powering down! In first half of FY19, discoms report financial loss of over Rs 15,000 crore


Powering down! In first half of FY19, discoms report financial loss of over Rs 15,000 crore

State-run electricity distribution companies (discoms) reported financial losses of over Rs 15,000 crore in the first half of this fiscal — as much as the losses incurred by them during the whole of last year (see chart) — signalling a reversal of a declining trend since the UDAY scheme for these entities’ revival was launched in November 2015 and a possible unravelling of the scheme itself.

Losses of the discoms in Telangana, Tamil Nadu, Madhya Pradesh, Assam and Andhra Pradesh more than doubled during H1FY19 over the year-ago period, according to a recent power ministry report reviewed by FE.

Under UDAY, financial losses of the discoms in 27 states have fallen to Rs 15,049 crore in FY18 from Rs 36,905 crore in FY17 (Rs 51,480 crore in FY16), thanks mainly to the savings made through lower interest costs. Read More

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