Lok Sabha Question No. 139 (STARRED), answered on 2017-03-09
Subject: Financial turnaround of DISCOMS
Ministry: POWER
Asked by: B.V. NAYAK

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA STARRED QUESTION NO.139 TO BE ANSWERED ON 09.03.2017

## FINANCIAL TURNAROUND OF DISCOMS

*139. SHRI B. V. NAIK:

Will the Minister of POWER be pleased to state:

- (a) the  quantum  of  profit  or  loss  of  State  electricity  DISCOMS during the last five years, State-wise;
- (b) the reasons identified by the Government for stagnation/decline in the electricity generation capacity of State power utilities;
- (c) whether the Government is considering to recast the loans of State power DISCOMS; and
- (d) if so, the details thereof including the debt restructuring proposals being considered and if not, the reasons therefor, State/UT-wise?

A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, COAL, NEW & RENEWABLE ENERGY AND MINES

( SHRI  PIYUSH GOYAL )

- (a) to (d) : A Statement is laid on the Table of the House.

*******

STATEMENT

STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  STARRED QUESTION  NO.139  TO  BE  ANSWERED  IN  THE  LOK  SABHA  ON  09.03.2017 REGARDING FINANCIAL TURNAROUND OF DISCOMS.

*********

- (a) : Power  Finance  Corporation  (PFC)  Ltd.  publishes  the  'Report  on Performance of State Power Utilities'. Based on the report published by PFC Ltd., the  aggregate  losses  for  utilities  selling  power  directly  to  consumers  for  the years 2010-11 to 2014-15 are as given below:

(Rs. in crores)

| Financial Year                           | 2010-11   | 2011-12   | 2012-13   | 2013-14   | 2014-15   |
|------------------------------------------|-----------|-----------|-----------|-----------|-----------|
| Profit/(Loss) after tax on accrual basis | (49,600)  | (72,639)  | (70,835)  | (67,041)  | (56,206)  |
| Profit/(Loss) on subsidy received basis  | (51,971)  | (76,877)  | (71,621)  | (67,336)  | (58,275)  |

The state-wise and utility-wise details are given in Annexure.

- (b) : The  electricity  generation  capability  in  State  Power  Utilities  has exceeded the target during the 12th Plan Period. The generation capacity addition target  from  conventional  sources  during  the  12 th   Plan  period  was  88,537  MW which includes 15,530 MW in State Sector. Against this capacity addition target, the achievement in the state sector has been 23,162.3 MW as on 31.01.2017.
- (c) & (d) : The  Government  of  India  has  formulated  and  launched  the  scheme Ujwal DISCOM Assurance Yojana (UDAY) on 20.11.2015 and further extended it up to March 2017 vide OM dated 08.07.2016 for the States/UTs which could not participate in the scheme during the Financial Year (FY) 2016. UDAY allows for considering  debt  recast  of  State  Power  DISCOMs  through  issue  of  bonds  /  repricing  of  loans.  UDAY  aims  to  enable  Operational  Improvement  and  Financial Turnaround  of  DISCOMs  through  several  initiatives  outlined  under  the  scheme, which include reduction of DISCOM debt & interest burden through debt recast of State DISCOMs.

Till now, 21 States and 1 UT have signed Memorandum  of Understanding (MoU) under UDAY with Ministry of Power. Out of these, 7 have joined UDAY for Operational Improvement and the remaining 15 have joined for operational  improvement  as  well  as  financial  turnaround.  The  debt  of  these  15 States, as outstanding as on 30.09.2015 is to be recast, as per the provisions of UDAY  MoU  signed  with  these  States.  So  far,  out  of  total  debt  of  approx. Rs.2,72,309.00 Cr proposed to be recast for these 15 States, Rs.2,07,277.29 Cr worth liabilities have already been restructured.

************

## ANNEXURE REFERRED TO IN PART (a) OF THE STATEMENT LAID IN REPLY TO STARRED QUESTION NO. 139 TO BE ANSWERED IN THE LOK SABHA ON 09.03.2017 REGARDING FINANCIAL TURNAROUND OF DISCOMS.

***********

## Profit & Loss Statement of State Electricity DISCOMs during the last Five Years

Figures in Crores

|                     |                         |                     | 2010-11                                   | 2010-11                                  | 2011-12                                   | 2011-12                                  | 2012-13                                   | 2012-13                                  | 2013-14                                   | 2013-14                                  | 2014-15                                   | 2014-15                                  |
|---------------------|-------------------------|---------------------|-------------------------------------------|------------------------------------------|-------------------------------------------|------------------------------------------|-------------------------------------------|------------------------------------------|-------------------------------------------|------------------------------------------|-------------------------------------------|------------------------------------------|
| Region              | State                   | Utility             | Profit/ (Loss) after tax on accrual basis | Profit/ (Loss) on subsidy received basis | Profit /(Loss) after tax on accrual basis | Profit/ (Loss) on subsidy received basis | Profit/ (Loss) after tax on accrual basis | Profit/ (Loss) on subsidy received basis | Profit/ (Loss) after tax on accrual basis | Profit/ (Loss) on subsidy received basis | Profit/ (Loss) after tax on accrual basis | Profit/ (Loss) on subsidy received basis |
| Eastern             | Bihar                   | BSEB                | (1,332)                                   | (1,332)                                  | (2,662)                                   | (2,662)                                  | (1,088)                                   | (1,088)                                  |                                           | 0                                        |                                           | 0                                        |
| Eastern             |                         | NBPDCL              |                                           | 0                                        |                                           | 0                                        | (56)                                      | (56)                                     | (74)                                      | (74)                                     | (297)                                     | (491)                                    |
| Eastern             |                         | SBPDCL              |                                           | 0                                        |                                           | 0                                        | (84)                                      | (84)                                     | (269)                                     | (269)                                    | (748)                                     | (748)                                    |
|                     | Bihar Total             |                     | (1,332)                                   | (1,332)                                  | (2,662)                                   | (2,662)                                  | (1,227)                                   | (1,227)                                  | (343)                                     | (343)                                    | (1,044)                                   | (1,239)                                  |
|                     | Jharkhand               | JSEB                | (723)                                     | (723)                                    | (3,211)                                   | (3,211)                                  | (2,668)                                   | (2,668)                                  | (3,950)                                   | (3,950)                                  |                                           | 0                                        |
|                     |                         | JBVNL               |                                           | 0                                        |                                           | 0                                        |                                           | 0                                        | (71)                                      | (71)                                     | (37)                                      | (37)                                     |
|                     | Jharkhand Total         |                     | (723)                                     | (723)                                    | (3,211)                                   | (3,211)                                  | (2,668)                                   | (2,668)                                  | (4,021)                                   | (4,021)                                  | (37)                                      | (37)                                     |
|                     | Odisha                  | CESU                | (87)                                      | (87)                                     | (257)                                     | (257)                                    | (316)                                     | (316)                                    | (199)                                     | (199)                                    | (202)                                     | (202)                                    |
|                     |                         | NESCO               | (72)                                      | (72)                                     | (92)                                      | (92)                                     | (77)                                      | (77)                                     | (45)                                      | (45)                                     | (123)                                     | (123)                                    |
|                     |                         | SESCO               | (19)                                      | (19)                                     | (22)                                      | (22)                                     | (34)                                      | (34)                                     | (11)                                      | (11)                                     | (379)                                     | (379)                                    |
|                     |                         | WESCO               | (38)                                      | (38)                                     | (52)                                      | (52)                                     | (132)                                     | (132)                                    | (87)                                      | (87)                                     | (224)                                     | (224)                                    |
|                     | Odisha Total            |                     | (215)                                     | (215)                                    | (423)                                     | (423)                                    | (559)                                     | (559)                                    | (342)                                     | (342)                                    | (929)                                     | (929)                                    |
|                     | Sikkim                  | Sikkim PD           | (23)                                      | (23)                                     | (17)                                      | (17)                                     | 39                                        | 39                                       | 33                                        | 33                                       | (126)                                     | (126)                                    |
|                     | Sikkim Total            |                     | (23)                                      | (23)                                     | (17)                                      | (17)                                     | 39                                        | 39                                       | 33                                        | 33                                       | (126)                                     | (126)                                    |
|                     | West Bengal             | WBSEDCL             | 95                                        | 95                                       | 73                                        | 73                                       | 82                                        | 82                                       | 19                                        | 19                                       | 20                                        | 20                                       |
|                     | West Bengal Total       |                     | 95                                        | 95                                       | 73                                        | 73                                       | 82                                        | 82                                       | 19                                        | 19                                       | 20                                        | 20                                       |
| Eastern Total       |                         |                     | (2,198)                                   | (2,198)                                  | (6,240)                                   | (6,240)                                  | (4,332)                                   | (4,332)                                  | (4,654)                                   | (4,654)                                  | (2,116)                                   | (2,310)                                  |
| North Eastern       | Arunachal Pradesh       | Arunachal PD        | (182)                                     | (182)                                    | (274)                                     | (274)                                    | (255)                                     | (255)                                    | (428)                                     | (428)                                    | (257)                                     | (257)                                    |
|                     | Arunachal Pradesh Total |                     | (182)                                     | (182)                                    | (274)                                     | (274)                                    | (255)                                     | (255)                                    | (428)                                     | (428)                                    | (257)                                     | (257)                                    |
|                     | Assam                   | APDCL               | (486)                                     | (486)                                    | (408)                                     | (558)                                    | (418)                                     | (568)                                    | (528)                                     | (693)                                    | (578)                                     | (578)                                    |
|                     | Assam Total             |                     | (486)                                     | (486)                                    | (408)                                     | (558)                                    | (418)                                     | (568)                                    | (528)                                     | (693)                                    | (578)                                     | (578)                                    |
|                     | Manipur                 | Manipur PD          | (204)                                     | (204)                                    | (307)                                     | (307)                                    | (315)                                     | (315)                                    | (194)                                     | (194)                                    |                                           | 0                                        |
|                     |                         | MSPDCL              |                                           | 0                                        |                                           | 0                                        |                                           | 0                                        |                                           | 0                                        | 0                                         | 0                                        |
|                     | Manipur Total           |                     | (204)                                     | (204)                                    | (307)                                     | (307)                                    | (315)                                     | (315)                                    | (194)                                     | (194)                                    | 0                                         | 0                                        |
|                     | Meghalaya               | MeECL               | (114)                                     | (114)                                    | (204)                                     | (204)                                    |                                           | 0                                        |                                           | 0                                        |                                           | 0                                        |
|                     |                         | MePDCL              |                                           | 0                                        |                                           | 0                                        | (221)                                     | (221)                                    | (295)                                     | (295)                                    | (202)                                     | (202)                                    |
|                     | Meghalaya Total         |                     | (114)                                     | (114)                                    | (204)                                     | (204)                                    | (221)                                     | (221)                                    | (295)                                     | (295)                                    | (202)                                     | (202)                                    |
|                     | Mizoram                 | Mizoram PD          | (158)                                     | (158)                                    | (127)                                     | (127)                                    | (200)                                     | (200)                                    | (192)                                     | (192)                                    | (192)                                     | (192)                                    |
|                     | Mizoram Total           |                     | (158)                                     | (158)                                    | (127)                                     | (127)                                    | (200)                                     | (200)                                    | (192)                                     | (192)                                    | (192)                                     | (192)                                    |
|                     | Nagaland                | Nagaland PD         | (179)                                     | (179)                                    | (214)                                     | (214)                                    | (212)                                     | (212)                                    | (191)                                     | (191)                                    | (315)                                     | (315)                                    |
|                     | Nagaland Total          |                     | (179)                                     | (179)                                    | (214)                                     | (214)                                    | (212)                                     | (212)                                    | (191)                                     | (191)                                    | (315)                                     | (315)                                    |
|                     | Tripura                 | Tripura PD          | (126)                                     | (130)                                    | (157)                                     | (157)                                    |                                           | 0                                        |                                           | 0                                        |                                           | 0 (82)                                   |
|                     |                         | TSECL               |                                           | 0                                        |                                           | 0                                        | (107)                                     | (107)                                    | (62)                                      | (62)                                     | (60)                                      |                                          |
|                     | Tripura Total           |                     | (126)                                     | (130)                                    | (157)                                     | (157)                                    | (107)                                     | (107)                                    | (62)                                      | (62)                                     | (60)                                      | (82)                                     |
| North Eastern Total | North Eastern Total     | North Eastern Total | (1,450)                                   | (1,454)                                  | (1,692)                                   | (1,842)                                  | (1,730)                                   | (1,880)                                  | (1,891)                                   | (2,056)                                  | (1,603)                                   | (1,625)                                  |

............2.

| Northern       | Delhi                  | BSES Rajdhani   | 388      | 388        | 121               | 121      | 21                | 21                | 8        | 8        | 63                | 63              |
|----------------|------------------------|-----------------|----------|------------|-------------------|----------|-------------------|-------------------|----------|----------|-------------------|-----------------|
|                |                        | BSES Yamuna     | 155      | 155        | 21                | 21       | 25                | 25                | 11       | 11       | 19                | 19              |
|                |                        | TPDDL           | 258      | 258        | 339               | 339      | 310               | 310               | 334      | 334      | 336               | 336             |
|                | Delhi Total            |                 | 801      | 801        | 481               | 481      | 356               | 356               | 353      | 353      | 418               | 418             |
|                | Haryana                | DHBVNL          | (792)    | (955)      | (4,599)           | (4,599)  | (1,352)           | (1,352)           | (2,089)  | (2,089)  | (636)             | (636)           |
|                |                        | UHBVNL          | (129)    | (129)      | (8,604)           | (8,604)  | (2,297)           | (2,297)           | (1,465)  | (1,465)  | (1,481)           | (1,481)         |
|                | Haryana Total          |                 | (921)    | (1,084)    | (13,203)          | (13,203) | (3,649)           | (3,649)           | (3,554)  | (3,554)  | (2,117)           | (2,117)         |
|                | Himachal Pradesh       | HPSEB           | (122)    | (122)      |                   | 0        |                   | 0                 |          | 0        |                   | 0               |
|                |                        | HPSEB Ltd.      | (380)    | (380)      | (513)             | (513)    | (340)             | (340)             | (137)    | (137)    | (125)             | (125)           |
|                | Himachal Pradesh Total |                 | (502)    | (502)      | (513)             | (513)    | (340)             | (340)             | (137)    | (137)    | (125)             | (125)           |
|                | Jammu & Kashmir        | J&K PDD         | (2,167)  | (2,167)    | (3,037)           | (3,037)  | (3,129)           | (3,129)           | (2,387)  | (2,387)  | (3,913)           | (3,913)         |
|                | Jammu & Kashmir        | Total           | (2,167)  | (2,167)    | (3,037)           | (3,037)  | (3,129)           | (3,129)           | (2,387)  | (2,387)  | (3,913)           | (3,913)         |
|                | Punjab                 | PSPCL           | (1,640)  | (1,640)    | (537)             | (459)    | 261               | 94                | 249      | 249      | 133               | (1,100)         |
|                | Punjab Total           |                 | (1,640)  | (1,640)    | (537)             | (459)    | 261               | 94                | 249      | 249      | 133               | (1,100)         |
|                | Rajasthan              | AVVNL           | (6,907)  | (6,907)    | (7,596)           | (7,596)  | (3,905)           | (3,905)           | (4,843)  | (4,843)  | (3,593)           | (3,593)         |
|                |                        | JDVVNL          | (6,827)  | (6,827)    | (6,179)           | (6,179)  | (4,285)           | (4,285)           | (5,299)  | (5,299)  | (4,146)           | (4,146)         |
|                |                        | JVVNL           | (7,636)  | (7,636)    | (5,797)           | (5,797)  | (4,161)           | (4,161)           | (5,503)  | (5,503)  | (4,735)           | (4,735)         |
|                | Rajasthan Total        |                 | (21,370) | (21,370)   | (19,572)          | (19,572) | (12,351)          | (12,351)          | (15,645) | (15,645) | (12,474)          | (12,474)        |
|                | Uttar Pradesh          | DVVN            | (1,322)  | (1,322)    | (2,840)           | (2,840)  | (3,364)           | (3,364)           | (5,521)  | (5,521)  | (2,936)           | (2,936)         |
|                |                        | KESCO           | (182)    | (182)      | (384)             | (384)    | (545)             | (545)             | (674)    | (674)    | (168)             | (168)           |
|                |                        | MVVN            | (742)    | (742)      | (1,765)           | (1,765)  | (2,033)           | (2,033)           | (3,263)  | (3,263)  | (1,994)           | (1,994)         |
|                |                        | Pash VVN        | (453)    | (453)      | (1,992)           | (1,992)  | (1,303)           | (1,303)           | (3,172)  | (3,172)  | (1,577)           | (1,577)         |
|                |                        | Poorv VVN       | (1,268)  | (1,268)    | (2,244)           | (2,244)  | (2,533)           | (2,533)           | (4,095)  | (4,095)  | (2,000)           | (2,000)         |
|                | Uttar Pradesh Total    |                 | (3,966)  | (3,966)    | (9,224)           | (9,224)  | (9,778)           | (9,778)           | (16,724) | (16,724) | (8,675)           | (8,675)         |
|                | Uttarakhand            | Ut PCL          | (204)    | (204)      | (55)              | (55)     | (16)              | (16)              | 323      | 323      | (260)             | (260)           |
|                | Uttarakhand Total      |                 | (204)    | (204)      | (55)              | (55)     | (16)              | (16)              | 323      | 323      | (260)             | (260)           |
| Northern Total |                        |                 | (29,969) | (30,132)   | (45,660)          | (45,582) | (28,647)          | (28,814)          | (37,521) | (37,521) | (27,012)          | (28,245)        |
| Southern       | Andhra Pradesh         | APCPDCL         | 3        | (778)      | 4                 | (1,476)  | (7,718)           | (7,718)           | (811)    | (811)    |                   | 0               |
|                |                        | APEPDCL         | 13       | (572)      | 25                | (963)    | (1,681)           | (1,681)           | (136)    | (136)    | (722)             | (722)           |
|                |                        | APNPDCL         | 7        | (409)      | 3                 | (874)    | (3,436)           | (3,445)           | (31)     | (31)     |                   | 0               |
|                |                        | APSPDCL         | 3        | (418)      | 6                 | (710)    | (4,673)           | (4,678)           | (401)    | (401)    | (1,675)           | (1,827)         |
|                | Andhra Pradesh Total   |                 | 26       | (2,178)    | 38                | (4,022)  | (17,508)          | (17,522)          | (1,379)  | (1,379)  | (2,397)           | (2,549)         |
|                | Karnataka              | BESCOM          | 0        | 0          | 118               | 107      | (433)             | (433)             | 76       | 76       | 113               | 113             |
|                |                        | CHESCOM         | 11       | 11         | (123)             | (269)    | (270)             | (337)             | (16)     | (72)     | 40                | 37              |
|                |                        | GESCOM          | 61       | 61         | (5)               | 34       | (189)             | (189)             | 38       | 38       | (110)             | (110)           |
|                |                        | HESCOM          | (65)     | (65)       | 40                | 40       | 41                | 41                | (576)    | (576)    | 30                | 30              |
|                |                        | MESCOM          | 2        | 2          | 6                 | 6        | 13                | 13                | 0        | 0        | 14                | 14              |
|                | Karnataka Total        |                 | 10       | 10         | 36                | (82)     | (838)             | (905)             | (478)    | (534)    | 88                | 85              |
|                | Kerala                 | KSEB            | 241      | 241        | 241               | 241      | 241               | 241               | 140      | 140      |                   | 0               |
|                |                        | KSEBL           |          | 0          |                   | 0        |                   | 0                 | (24)     | (24)     | (1,273)           | (1,273)         |
|                | Kerala Total           |                 | 241      | 241        | 241               | 241      | 241               | 241               | 116      | 116      | (1,273)           | (1,273)         |
|                | Puducherry             | Puducherry PD   | (134)    | (134)      | (164)             | (164)    | (308)             | (308)             | (60)     | (60)     | 157               | 157             |
|                | Puducherry Total       |                 | (134)    | (134)      | (164)             | (164)    | (308)             | (308)             | (60)     | (60)     | 157               | 157             |
|                | Tamil Nadu             | TNEB            | (6,273)  | (6,273)    |                   | 0        |                   |                   |          | 0        |                   | 0               |
|                |                        | TANGEDCO        | (5,634)  | (5,634)    |                   | (13,308) |                   | 0                 | (13,985) | (14,052) |                   | (12,757)        |
|                | Tamil Nadu Total       |                 | (11,907) | (11,907) 0 | (13,321) (13,321) | (13,308) | (11,679) (11,679) | (12,064) (12,064) | (13,985) | (14,052) | (12,757) (12,757) | (12,757)        |
|                | Telangana              | TSNPDCL TSSPDCL |          | 0          |                   | 0 0      |                   | 0 0               |          | 0 0      | (1,343) (1,171)   | (1,741) (1,171) |
|                | Telangana Total        |                 |          | 0          |                   | 0        |                   | 0                 |          | 0        | (2,513)           | (2,912)         |
| Southern Total |                        |                 | (11,764) | (13,967)   | (13,171)          | (17,337) | (30,092)          | (30,559)          | (15,786) | (15,909) | (18,695)          | (19,249)        |

............3.

| Western       | Chhattisgarh         | CSPDCL                  | (581)    | (581)    | (2,012)   | (2,012)   | (498)    | (498)    | (630)    | (630)    | (1,554)   | (1,569)   |
|---------------|----------------------|-------------------------|----------|----------|-----------|-----------|----------|----------|----------|----------|-----------|-----------|
|               | Chhattisgarh Total   |                         | (581)    | (581)    | (2,012)   | (2,012)   | (498)    | (498)    | (630)    | (630)    | (1,554)   | (1,569)   |
|               | Goa                  | Goa PD                  | (79)     | (79)     | (271)     | (271)     | (285)    | (285)    | (4)      | (4)      | (17)      | (17)      |
|               | Goa Total            |                         | (79)     | (79)     | (271)     | (271)     | (285)    | (285)    | (4)      | (4)      | (17)      | (17)      |
|               | Gujarat              | DGVCL                   | 63       | 63       | 76        | 76        | 25       | 25       | 52       | 52       | 51        | 51        |
|               |                      | MGVCL                   | 25       | 25       | 36        | 36        | 21       | 21       | 19       | 19       | 29        | 29        |
|               |                      | PGVCL                   | 3        | 3        | 9         | 9         | 11       | 11       | 10       | 10       | 11        | 11        |
|               |                      | UGVCL                   | 13       | 13       | 12        | 12        | 14       | 14       | 14       | 14       | 17        | 17        |
|               | Gujarat Total        |                         | 103      | 103      | 134       | 134       | 71       | 71       | 95       | 95       | 108       | 108       |
|               | Madhya Pradesh       | MP Madhya Kshetra VVCL  | (605)    | (605)    | (1,129)   | (1,129)   | (1,593)  | (1,595)  | (2,672)  | (2,672)  | (2,728)   | (2,765)   |
|               |                      | MP Paschim Kshetra VVCL | (578)    | (578)    | (624)     | (624)     | (1,425)  | (1,425)  | (1,811)  | (1,811)  | (1,061)   | (1,061)   |
|               |                      | MP Purv Kshetra VVCL    | (974)    | (974)    | (1,167)   | (1,167)   | (1,432)  | (1,432)  | (1,887)  | (1,893)  | (1,162)   | (1,175)   |
|               | Madhya Pradesh Total |                         | (2,157)  | (2,157)  | (2,920)   | (2,920)   | (4,450)  | (4,452)  | (6,370)  | (6,376)  | (4,950)   | (5,001)   |
|               | Maharashtra          | MSEDCL                  | (1,505)  | (1,505)  | (808)     | (808)     | (871)    | (871)    | (280)    | (280)    | (366)     | (366)     |
|               | Maharashtra Total    |                         | (1,505)  | (1,505)  | (808)     | (808)     | (871)    | (871)    | (280)    | (280)    | (366)     | (366)     |
| Western Total |                      |                         | (4,219)  | (4,219)  | (5,877)   | (5,877)   | (6,034)  | (6,036)  | (7,190)  | (7,196)  | (6,780)   | (6,845)   |
| Grand Total   |                      |                         | (49,600) | (51,971) | (72,639)  | (76,877)  | (70,835) | (71,621) | (67,041) | (67,336) | (56,206)  | (58,275)  |

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