Lok Sabha Question No. 210 (STARRED), answered on 2017-03-16
Subject: Commercial Losses of SEBs
Ministry: POWER
Asked by: OM BIRLA

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA STARRED QUESTION NO.210 TO BE ANSWERED ON 16.03.2017

COMMERCIAL LOSSES OF SEBs

*210.  SHRI OM BIRLA:

Will the Minister of POWER be pleased to state:

(a) whether several State Electricity Boards (SEBs) are incurring commercial losses;

(b) if  so,  the details of the loss suffered by each SEB during each of the last three years and the reasons therefor, State-wise;

(c) whether  any  working  group  has  been  constituted  by  the  Government  to look into the issue;

(d) if so, the details and the findings thereof; and

(e) the corrective action taken by the Government thereon?

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 (e) : A Statement is laid on the Table of the House.

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STATEMENT

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF STARRED QUESTION NO.210 TO BE ANSWERED IN THE LOK SABHA ON 16.03.2017 REGARDING COMMERCIAL LOSSES OF SEBs.

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(a) & (b) : Yes,  Madam.  As  per  'Report  on  Performance  of  State  Power Utilities' published by Power Finance Corporation (PFC) Ltd., the aggregate losses of utilities  selling  power  directly  to  consumers  for  the years 2012-13 to 2014-15 is furnished below:

|                                                        | 2012-13   | 2013-14   | 2014-15   |
|--------------------------------------------------------|-----------|-----------|-----------|
| Profit/(Loss) on subsidy received basis (Rs. in crore) | (71,621)  | (67,336)  | (58,275)  |

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

The reasons for losses being made by State utilities, inter-alia, include  high  cost  of  servicing  debt,  high  cost  of  power,  high  Aggregate Technical and Commercial (AT&C) losses and low revenue realization.

(c) to (e) : No  working  Group  has  been  constituted  by  the  Government. However, based on extensive stakeholder consultation by the Government with Banks, Financial Institutions and States/Utilities, the Government has launched  Ujwal  Discom  Assurance  Yojana  (UDAY)  for  improving  the financial and operational health of DISCOMs on 20th November, 2015. The scheme  aims  to  reduce  interest  costs  and  the  cost  of  power,  while introducing  several  measures  to  improve  operational  efficiencies  and increase  revenue  realization. Further, to  improve  power  distribution system, the Government has launched two schemes, namely, Integrated Power  Development  Scheme  (IPDS),  Deen  Dayal  Upadhyaya  Gram  Jyoti Yojana (DDUGJY).

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## ANNEXURE

ANNEXURE REFERRED TO IN PARTS (a) & (b)  OF  THE  STATEMENT  LAID  IN  REPLY  TO STARRED  QUESTION  NO.  210  TO  BE  ANSWERED  IN  THE  LOK  SABHA  ON  16.03.2017 REGARDING COMMERCIAL LOSSES OF SEBs.

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| Details of State-wise and Utility-wise loss incurred (Rupees in Crores)   | Details of State-wise and Utility-wise loss incurred (Rupees in Crores)   | Details of State-wise and Utility-wise loss incurred (Rupees in Crores)   | Details of State-wise and Utility-wise loss incurred (Rupees in Crores)   | Details of State-wise and Utility-wise loss incurred (Rupees in Crores)   | Details of State-wise and Utility-wise loss incurred (Rupees in Crores)   | Details of State-wise and Utility-wise loss incurred (Rupees in Crores)   | Details of State-wise and Utility-wise loss incurred (Rupees in Crores)   | Details of State-wise and Utility-wise loss incurred (Rupees in Crores)   |
|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|
|                                                                           |                                                                           |                                                                           | 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                                  |
| Eastern                                                                   | Bihar                                                                     | BSEB                                                                      | -1,088                                                                    | -1,088                                                                    |                                                                           | 0                                                                         |                                                                           | 0                                                                         |
|                                                                           |                                                                           | NBPDCL                                                                    | -56                                                                       | -56                                                                       | -74                                                                       | -74                                                                       | -297                                                                      | -491                                                                      |
|                                                                           |                                                                           | SBPDCL                                                                    | -84                                                                       | -84                                                                       | -269                                                                      | -269                                                                      | -748                                                                      | -748                                                                      |
|                                                                           | Bihar Total                                                               |                                                                           | -1,227                                                                    | -1,227                                                                    | -343                                                                      | -343                                                                      | -1,044                                                                    | -1,239                                                                    |
|                                                                           | Jharkhand                                                                 | JSEB                                                                      | -2,668                                                                    | -2,668                                                                    | -3,950                                                                    | -3,950                                                                    |                                                                           | 0                                                                         |
|                                                                           |                                                                           | JBVNL                                                                     |                                                                           | 0                                                                         | -71                                                                       | -71                                                                       | -37                                                                       | -37                                                                       |
|                                                                           | Jharkhand                                                                 | Total                                                                     | -2,668                                                                    | -2,668                                                                    | -4,021                                                                    | -4,021                                                                    | -37                                                                       | -37                                                                       |
|                                                                           | Odisha                                                                    | CESU                                                                      | -316                                                                      | -316                                                                      | -199                                                                      | -199                                                                      | -202                                                                      | -202                                                                      |
|                                                                           |                                                                           | NESCO                                                                     | -77                                                                       | -77                                                                       | -45                                                                       | -45                                                                       | -123                                                                      | -123                                                                      |
|                                                                           |                                                                           | SESCO                                                                     | -34                                                                       | -34                                                                       | -11                                                                       | -11                                                                       | -379                                                                      | -379                                                                      |
|                                                                           |                                                                           | WESCO                                                                     | -132                                                                      | -132                                                                      | -87                                                                       | -87                                                                       | -224                                                                      | -224                                                                      |
|                                                                           | Odisha Total                                                              |                                                                           | -559                                                                      | -559                                                                      | -342                                                                      | -342                                                                      | -929                                                                      | -929                                                                      |
|                                                                           | Sikkim                                                                    | Sikkim PD                                                                 | 39                                                                        | 39                                                                        | 33                                                                        | 33                                                                        | -126                                                                      | -126                                                                      |
|                                                                           | Sikkim Total                                                              |                                                                           | 39                                                                        | 39                                                                        | 33                                                                        | 33                                                                        | -126                                                                      | -126                                                                      |
|                                                                           | West Bengal                                                               | WBSEDCL                                                                   | 82                                                                        | 82                                                                        | 19                                                                        | 19                                                                        | 20                                                                        | 20                                                                        |
|                                                                           | West Bengal Total                                                         | West Bengal Total                                                         | 82                                                                        | 82                                                                        | 19                                                                        | 19                                                                        | 20                                                                        | 20                                                                        |
| Eastern Total                                                             |                                                                           |                                                                           | -4,332                                                                    | -4,332                                                                    | -4,654                                                                    | -4,654                                                                    | -2,116                                                                    | -2,310                                                                    |
| North                                                                     | Arunachal                                                                 | Arunachal PD                                                              | -255                                                                      | -255                                                                      | -428                                                                      | -428                                                                      | -257                                                                      | -257                                                                      |
| Eastern                                                                   | Pradesh Arunachal                                                         | Pradesh Total                                                             | -255                                                                      | -255                                                                      | -428                                                                      | -428                                                                      | -257                                                                      | -257                                                                      |
|                                                                           | Assam                                                                     | APDCL                                                                     | -418                                                                      | -568                                                                      | -528                                                                      | -693                                                                      | -578                                                                      | -578                                                                      |
|                                                                           | Assam Total                                                               |                                                                           | -418                                                                      | -568                                                                      | -528                                                                      | -693                                                                      | -578                                                                      | -578                                                                      |
|                                                                           | Manipur                                                                   | Manipur PD                                                                | -315                                                                      | -315                                                                      | -194                                                                      | -194                                                                      |                                                                           | 0                                                                         |
|                                                                           |                                                                           |                                                                           |                                                                           |                                                                           |                                                                           |                                                                           |                                                                           | 0                                                                         |
|                                                                           | MSPDCL Manipur Total                                                      | MSPDCL Manipur Total                                                      | -315                                                                      | 0                                                                         | -194                                                                      | 0 -194                                                                    | 0 0                                                                       | 0                                                                         |
|                                                                           | Meghalaya                                                                 | MePDCL                                                                    | -221                                                                      | -315 -221                                                                 | -295                                                                      | -295                                                                      | -202                                                                      | -202                                                                      |
|                                                                           | Meghalaya                                                                 |                                                                           | -221                                                                      | -221                                                                      | -295                                                                      | -295                                                                      | -202                                                                      | -202                                                                      |
|                                                                           | Mizoram                                                                   | Mizoram PD                                                                | -200                                                                      | -200                                                                      | -192                                                                      | -192                                                                      | -192                                                                      | -192                                                                      |
|                                                                           | Mizoram                                                                   |                                                                           | -200                                                                      | -200                                                                      | -192                                                                      | -192                                                                      | -192                                                                      | -192                                                                      |
|                                                                           | Nagaland                                                                  | Nagaland PD                                                               | -212                                                                      | -212                                                                      | -191                                                                      | -191                                                                      | -315                                                                      | -315                                                                      |
|                                                                           | Nagaland Total                                                            |                                                                           | -212                                                                      | -212                                                                      | -191                                                                      | -191                                                                      | -315                                                                      | -315                                                                      |
|                                                                           | Tripura                                                                   | TSECL                                                                     | -107                                                                      | -107                                                                      | -62                                                                       | -62                                                                       | -60                                                                       | -82                                                                       |
|                                                                           | Tripura Total                                                             |                                                                           | -107                                                                      | -107                                                                      | -62                                                                       | -62                                                                       | -60                                                                       | -82                                                                       |
| North Eastern                                                             | Total                                                                     |                                                                           | -1,730                                                                    | -1,880                                                                    | -1,891                                                                    | -2,056                                                                    | -1,603                                                                    | -1,625                                                                    |
| Northern                                                                  | Delhi                                                                     |                                                                           | 21                                                                        | 21                                                                        | 8                                                                         | 8                                                                         | 63                                                                        | 63                                                                        |
|                                                                           |                                                                           | BSES Rajdhani                                                             |                                                                           |                                                                           |                                                                           |                                                                           |                                                                           |                                                                           |
|                                                                           |                                                                           | BSES Yamuna                                                               | 25                                                                        | 25                                                                        | 11                                                                        | 11                                                                        | 19                                                                        | 19                                                                        |
|                                                                           | Delhi Total                                                               |                                                                           | 356                                                                       | 356                                                                       | 353                                                                       | 353                                                                       | 418                                                                       | 418                                                                       |
|                                                                           | Haryana                                                                   | DHBVNL                                                                    | -1,352                                                                    | -1,352                                                                    | -2,089                                                                    | -2,089                                                                    | -636                                                                      | -636                                                                      |
|                                                                           |                                                                           | UHBVNL                                                                    | -2,297                                                                    | -2,297                                                                    | -1,465                                                                    |                                                                           | -1,481                                                                    | -1,481                                                                    |
|                                                                           |                                                                           |                                                                           | -3,649                                                                    |                                                                           |                                                                           | -1,465                                                                    | -2,117                                                                    | -2,117                                                                    |
|                                                                           | Haryana Total Himachal                                                    | HPSEB Ltd.                                                                | -340                                                                      | -3,649 -340                                                               | -3,554 -137                                                               | -3,554 -137                                                               | -125                                                                      | -125                                                                      |
|                                                                           | Pradesh Himachal                                                          | Pradesh Total                                                             | -340                                                                      |                                                                           |                                                                           |                                                                           | -125                                                                      | -125                                                                      |
|                                                                           |                                                                           |                                                                           |                                                                           | -340                                                                      | -137                                                                      | -137                                                                      | -3,913                                                                    | -3,913                                                                    |
|                                                                           | Jammu & Kashmir                                                           | J&K PDD                                                                   | -3,129                                                                    | -3,129                                                                    | -2,387                                                                    | -2,387                                                                    |                                                                           | -3,913                                                                    |
|                                                                           | Jammu & Kashmir Total                                                     | Jammu & Kashmir Total                                                     | -3,129                                                                    | -3,129                                                                    | -2,387                                                                    | -2,387                                                                    | -3,913                                                                    |                                                                           |

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

|                      | Punjab               | PSPCL                   | 261     | 94      | 249     | 249     | 133     | -1,100        |
|----------------------|----------------------|-------------------------|---------|---------|---------|---------|---------|---------------|
|                      | Punjab Total         |                         | 261     | 94      | 249     | 249     | 133     | -1,100        |
|                      | Rajasthan            | AVVNL                   | -3,905  | -3,905  | -4,843  | -4,843  | -3,593  | -3,593        |
|                      |                      | JDVVNL                  | -4,285  | -4,285  | -5,299  | -5,299  | -4,146  | -4,146        |
|                      |                      | JVVNL                   | -4,161  | -4,161  | -5,503  | -5,503  | -4,735  | -4,735        |
|                      | Rajasthan Total      |                         | -12,351 | -12,351 | -15,645 | -15,645 | -12,474 | -12,474       |
|                      | Uttar Pradesh        | DVVN                    | -3,364  | -3,364  | -5,521  | -5,521  | -2,936  | -2,936        |
|                      |                      | KESCO                   | -545    | -545    | -674    | -674    | -168    | -168          |
|                      |                      | MVVN                    | -2,033  | -2,033  | -3,263  | -3,263  | -1,994  | -1,994        |
|                      |                      | Pash VVN                | -1,303  | -1,303  | -3,172  | -3,172  | -1,577  | -1,577        |
|                      |                      | Poorv VVN               | -2,533  | -2,533  | -4,095  | -4,095  | -2,000  | -2,000        |
|                      | Uttar Pradesh        | Total                   | -9,778  | -9,778  | -16,724 | -16,724 | -8,675  | -8,675        |
|                      | Uttarakhand          | Ut PCL                  | -16     | -16     | 323     | 323     | -260    | -260          |
|                      | Uttarakhand          | Total                   | -16     | -16     | 323     | 323     | -260    | -260          |
| Northern Total       | Northern Total       |                         | -28,647 | -28,814 | -37,521 | -37,521 | -27,012 | -28,245       |
| Southern             | Andhra Pradesh       | APCPDCL                 | -7,718  | -7,718  | -811    | -811    |         | 0             |
|                      |                      | APEPDCL                 | -1,681  | -1,681  | -136    | -136    | -722    | -722          |
|                      |                      | APNPDCL                 | -3,436  | -3,445  | -31     | -31     |         | 0             |
|                      |                      | APSPDCL                 | -4,673  | -4,678  | -401    | -401    | -1,675  | -1,827        |
|                      | Andhra Pradesh       | Total                   | -17,508 | -17,522 | -1,379  | -1,379  | -2,397  | -2,549        |
|                      | Karnataka            | BESCOM                  | -433    | -433    | 76      | 76      | 113     | 113           |
|                      |                      | CHESCOM                 | -270    | -337    | -16     | -72     | 40      | 37            |
|                      |                      | GESCOM                  | -189    | -189    | 38      | 38      | -110    | -110          |
|                      |                      | HESCOM                  | 41      | 41      | -576    | -576    | 30      | 30            |
|                      |                      | MESCOM                  | 13      | 13      | 0       | 0       | 14      | 14            |
|                      | Karnataka Total      |                         | -838    | -905    | -478    | -534    | 88      | 85            |
|                      | Kerala               | KSEB                    | 241     | 241     | 140     | 140     |         | 0             |
|                      |                      | KSEBL                   |         | 0       | -24     | -24     | -1,273  | -1,273        |
|                      | Kerala Total         |                         | 241     | 241     | 116     | 116     | -1,273  | -1,273        |
|                      | Puducherry           | Puducherry PD           | -308    | -308    | -60     | -60     | 157     | 157           |
|                      | Puducherry           | Total                   | -308    | -308    | -60     | -60     | 157     | 157           |
|                      | Tamil Nadu           | TANGEDCO                | -11,679 | -12,064 | -13,985 | -14,052 | -12,757 | -12,757       |
|                      | Tamil Nadu           | Total                   | -11,679 | -12,064 | -13,985 | -14,052 | -12,757 | -12,757       |
|                      | Telangana            | TSNPDCL                 |         | 0       |         | 0       | -1,343  | -1,741        |
|                      |                      | TSSPDCL                 |         | 0       |         | 0       | -1,171  | -1,171 -2,912 |
|                      | Telangana Total      |                         |         | 0       |         | 0       | -2,513  |               |
| Southern Total       | Southern Total       |                         | -30,092 | -30,559 | -15,786 | -15,909 | -18,695 | -19,249       |
| Western Chhattisgarh | Western Chhattisgarh | CSPDCL                  | -498    | -498    | -630    | -630    | -1,554  | -1,569        |
|                      | Chhattisgarh         | Total                   | -498    | -498    | -630    | -630    | -1,554  | -1,569        |
|                      | Goa                  | Goa PD                  | -285    | -285    | -4      | -4      | -17     | -17           |
|                      | Goa Total            |                         | -285    | -285    | -4      | -4      | -17     | -17           |
|                      | Gujarat              | DGVCL                   | 25      | 25      | 52      | 52      | 51      | 51            |
|                      |                      | MGVCL                   | 21      | 21      | 19      | 19      | 29      | 29            |
|                      |                      | PGVCL                   | 11      | 11 14   | 10      | 10      | 11      | 11 17         |
|                      |                      | UGVCL                   | 14      |         | 14      | 14      | 17      |               |
|                      | Gujarat Total        |                         | 71      | 71      | 95      | 95      | 108     | 108           |
|                      | Madhya Pradesh       | MP Madhya Kshetra VVCL  | -1,593  | -1,595  | -2,672  | -2,672  | -2,728  | -2,765        |
|                      |                      | MP Paschim Kshetra VVCL | -1,425  | -1,425  | -1,811  | -1,811  | -1,061  | -1,061        |
|                      |                      | MP Purv Kshetra VVCL    | -1,432  | -1,432  | -1,887  | -1,893  | -1,162  | -1,175        |
|                      | Madhya Pradesh       | Total                   | -4,450  | -4,452  | -6,370  | -6,376  | -4,950  | -5,001        |
|                      | Maharashtra          | MSEDCL                  | -871    | -871    | -280    | -280    | -366    | -366          |
|                      | Maharashtra          |                         |         |         |         |         |         | -366          |
|                      |                      | Total                   | -871    | -871    | -280    | -280    | -366    |               |
| Western Total        |                      |                         | -6,034  | -6,036  | -7,190  | -7,196  | -6,780  | -6,845        |
| Grand Total          |                      |                         | -70,835 | -71,621 | -67,041 | -67,336 | -56,206 | -58,275       |

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