State-run electricity distribution companies (discoms) reported a near doubling of their financial losses in FY19, in what reflected a dramatic reversal of the trend of a secular decline in losses in FY17 and FY18 thanks to the UDAY scheme. What caused these entities to digress from the pathway to progress are politically-motivated delays and inadequacies in tariff hikes and state government departments’ failure to pay them in time for the electricity purchased. Another reason for the rise in losses is the Saubhagya scheme for electrification of households. Discoms’ financial losses stood at Rs 28,369 crore at the end of FY19, up 88.6% year-on-year, according to the updated data provided to the power ministry.
The losses were reported at Rs 21,658 crore as at May-end (reflecting 44% annual increase), but several states have since revised their inputs in the Central government’s UDAY portal, revealing that the losses in aggregate were actually higher. Read More
Latest posts by Financial Express (see all)
- More Vande Bharat Express trains soon! Indian Railways readies new tender guidelines for semi-high speed train - August 16, 2019
- First-of-its-kind step! Seismic sensors, thermal cameras to check Indian Railways’ train-elephant collisions - August 14, 2019
- Howrah-Anand Vihar bi-weekly Express gets swanky! Passengers can enjoy better train rides with new LHB rake - August 14, 2019