Lok Sabha Question No. 4917 (UNSTARRED), answered on 2021-03-25
Subject: Losses Made by State owned DISCOMs
Ministry: POWER
Asked by: Kaushal Kishore, Sunil Kumar Singh, P.P. Chaudhary

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.4917 TO BE ANSWERED ON 25.03.2021

## LOSSES MADE BY STATE OWNED DISCOMS

4917.  SHRI KAUSHAL KISHORE: SHRI SUNIL KUMAR SINGH: SHRI P.P. CHAUDHARY:

Will the Minister of POWER be pleased to state:

(a) the  details  of  losses  made  by  all  the  State  owned  DISCOMs  during  the  last three years and the current year;

(b) the details of the schemes to help the DISCOMs;

(c) whether DISCOMs owned by States of Uttar Pradesh, Maharashtra, Jharkhand and  Rajasthan  are  receiving  support  from  the  Union  Government  under  the  Ujwal DISCOM Assurance Yojana (UDAY);

(d) if so, the details of the support granted by the Union Government to the said States;

(e) the details of the MoU signed by the said States under UDAY along with the information on the structure of loans extended thereby;

(f) whether the said states are able to achieve the targets set under UDAY and if so, the details thereof;

(g) whether the Union Government proposes to extend UDAY and if so, the details thereof; and

(h) whether States owned DISCOMs are allowed to levy non-power centric cess while benefitting from central subsidy and financial aid and if so, the details thereof?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, NEW & RENEWABLE ENERGY AND THE MINISTER OF STATE FOR SKILL DEVELOPMENT & ENTREPRENEURSHIP

(SHRI  R.K. SINGH)

(a) : Based  on  the  information  available  in  the  'Report  on  Performance  of State Power Utilities' published by Power Finance Corporation (PFC), the State wise profit  &  loss  of  Distribution  Utilities  in  India  for  the  years  2016-17  to  2018-19  is attached as Annexure-I.  Data for 2019-20 is under finalization.

………..2.

(b) : Jyoti

Government   of  India  had     launched  Deen  Dayal   Upadhyaya     Gram

Yojana    (DDUGJY) in     December  2014  for  the  rural   areas   with  the  objectives  of electrification  of  all  un-electrified  villages  as  per  Census  2011;  strengthening  and augmentation of sub-transmission  & distribution infrastructure in rural areas including construction of HT and LT  lines, metering at distribution transformers, feeders and consumers;  and  feeder  segregation.  Similarly,  Pradhan  Mantri  Sahaj  Bijli  Har  Ghar Yojana -  Saubhagya  was launched in  October, 2017 for electrification  of  rural  and

urban poor households in the country.

Government   of  India  had     launched  Integrated  Power  Development Scheme (IPDS)  in   December 2014 to facilitate State utilities to ensure quality and reliable 24x7 power supply in the urban areas. Strengthening of sub-transmission and distribution  networks  in  the  urban  areas;    metering  of  distribution  transformers  / feeders / consumers in the urban areas and IT enablement of distribution sector and strengthening of distribution network are being undertaken under the Scheme.

UDAY  has  been launched in 2015 for financial and operational turnaround  of  State  owned  power  DISCOMs.    The  purpose  of  UDAY  was  to  usher reforms  across  the  Power  and  coal  Sectors  through  competitive  and  cooperative federalism  to  pave  the  way  for  24X7  affordable  and  reliable  Power  for  all.    UDAY incorporated  a  slew  of  measures,  including  financial  re-engineering  measures,  as well as operational improvement measures. Exemptions were given to the States to borrow  outside  the  FRBM  limits  in  order  to  enable  them  to  take  over  75%  of  the outstanding debts of DISCOMs, as existed on 30 th  November 2015. The scheme had two  outcome  parameters:  (i)  AT&C  loss  reduction  to  15%;  and  (ii)  ACS-ARR  gap reduction to zero by March 2019. Due to the large scale of problems/ challenges in some States, as well as late joining, some States were given extension to complete the turnaround process by one or two years.

In  order  to  tide  over  the  liquidity  problems  of  the  power  sector, exacerbated by the outbreak of COVID-19, the Government of India had announced a Liquidity  Infusion  Scheme  as  part  of  Atmanirbhar  Bharat  Abhiyan  on  13th  May, 2020.   Under  this  intervention,  Rural  Electrification  Corporation  (REC)  and  Power Finance Corporation (PFC) are extending special long term transition loans up to 10 years to Discoms for liquidating outstanding dues (as on 30.06.2020) of CPSE Gencos & Transcos, IPPs and RE generators. So far, Loans to the extent of Rs.1,35,497 crore have  already  been  sanctioned  and  Rs.  46,322  crore  have  been  disbursed.    The disbursement under the long term transition loans have been linked with DISCOMs undertaking specified reform measures.

……….3.

- (c ) to  (e) : States  of  Uttar  Pradesh,  Maharashtra,  Jharkhand  and  Rajasthan  have joined Ujwal   DISCOM Assurance Yojana (UDAY) for financial and operational turnaround of their Power Distribution Companies (DISCOMs). Under UDAY, no funds are  disbursed  by  the  Government  of  India.  However,  the  scheme  incentivizes  the State by exempting State takeover of DISCOM debts from FRBM limits for two years; increased  supply  of  domestic  coal;  coal  linkage  rationalization;  liberally  allowing coal swaps from inefficient to efficient plants; allocation of coal linkages to States at notified prices.

Details of the MOU signed by the States of Uttar Pradesh, Maharashtra, Jharkhand and Rajasthan are given below:-

|   Sl. No. | STATE         | DISCOM        | DATE OF SIGNING   | Timeline as per MOU   |
|-----------|---------------|---------------|-------------------|-----------------------|
|         1 | Rajasthan     | AJMER (AVVNL) | 27-01-2016        | 31-03-2019            |
|         2 | Jharkhand     | JBVNL         | 05-01-2016        | 31-03-2019            |
|         3 | Maharashtra   | MSPDCL        | 07-10-2016        | 31-03-2019            |
|         4 | Uttar Pradesh | UPPCL         | 30-01-2016        | 31-03-2020            |

Summary  of  debt  restructuring  by  the  States  and  DISCOMs  of  Uttar Pradesh, Maharashtra, Jharkhand and Rajasthan is given at Annexure-II.

- (f) : The details of UDAY MoU Target vis-a-vis achievements for the States of Uttar Pradesh, Maharashtra, Jharkhand and Rajasthan are given at Annexure-III.
- (g) : No Sir, the Government of India has recently announced the launch of the Revamped Reforms-Based Results-Linked Scheme in the Budget 2020-21, which provides for financial assistance to DISCOMs tied to reforms and results.
- (h) : All DISCOMs are regulated by the respective State Electricity Regulatory  Commissions  and  accordingly  determine  the  consumer  tariffs.    Tariff setting process duly  takes care of grants received from the State Governments or Central Government.

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ANNEXURE-I ANNEXURE REFERRED TO IN REPLY TO PART (a) OF UNSTARRED QUESTION NO.   4917 TO BE ANSWERED IN THE LOK SABHA ON 25.03.2021

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| Profit/(Loss) on accrual basis (PAT)   | Profit/(Loss) on accrual basis (PAT)   | Profit/(Loss) on accrual basis (PAT)   | Profit/(Loss) on accrual basis (PAT)   | Profit/(Loss) on accrual basis (PAT)   |
|----------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|
| Sl. No.                                | State                                  | 2016-17                                | 2017-18                                | 2018-19                                |
| 1                                      | Andhra Pradesh                         | (2,282)                                | (2)                                    | (11,934)                               |
| 2                                      | Arunachal Pradesh                      | (324)                                  | (429)                                  | (428)                                  |
| 3                                      | Assam                                  | (34)                                   | 165                                    | 21                                     |
| 4                                      | Bihar                                  | (1,257)                                | (2,650)                                | (2,409)                                |
| 5                                      | Chhattisgarh                           | (422)                                  | (279)                                  | (42)                                   |
| 6                                      | Delhi                                  | 404                                    | 491                                    | 799                                    |
| 7                                      | Goa                                    | (283)                                  | 26                                     | (172)                                  |
| 8                                      | Gujarat                                | 275                                    | 426                                    | 184                                    |
| 9                                      | Haryana                                | (193)                                  | 412                                    | 281                                    |
| 10                                     | Himachal Pradesh                       | (111)                                  | 4                                      | 4                                      |
| 11                                     | Jammu & Kashmir                        | (4,063)                                | (2,999)                                | (2,902)                                |
| 12                                     | Jharkhand                              | (1,741)                                | (212)                                  | (751)                                  |
| 13                                     | Karnataka                              | (1,119)                                | (522)                                  | 970                                    |
| 14                                     | Kerala                                 | (1,495)                                | (784)                                  | (290)                                  |
| 15                                     | Madhya Pradesh                         | (1,470)                                | (5,284)                                | (7,159)                                |
| 16                                     | Maharashtra                            | 785                                    | 492                                    | 1,097                                  |
| 17                                     | Manipur                                | (15)                                   | (8)                                    | (19)                                   |
| 18                                     | Meghalaya                              | (343)                                  | (287)                                  | (203)                                  |
| 19                                     | Mizoram                                | (147)                                  | 87                                     | (83)                                   |
| 20                                     | Nagaland                               | (62)                                   | (62)                                   | (325)                                  |
| 21                                     | Odisha                                 | (913)                                  | (792)                                  | (1,539)                                |
| 22                                     | Puducherry                             | (8)                                    | 6                                      | (36)                                   |
| 23                                     | Punjab                                 | (2,836)                                | (907)                                  | (38)                                   |
| 24                                     | Rajasthan                              | (1,981)                                | 2,173                                  | 2,607                                  |
| 25                                     | Sikkim                                 | (115)                                  | (29)                                   | (3)                                    |
| 26                                     | Tamil Nadu                             | (4,349)                                | (7,761)                                | (12,623)                               |
| 27                                     | Telangana                              | (6,202)                                | (5,485)                                | (8,019)                                |
| 28                                     | Tripura                                | 40                                     | 28                                     | 21                                     |
| 29                                     | Uttar Pradesh                          | (3,322)                                | (5,002)                                | (6,032)                                |
| 30                                     | Uttarakhand                            | (289)                                  | (229)                                  | (553)                                  |
| 31                                     | West Bengal                            | (25)                                   | (40)                                   | (45)                                   |
|                                        | Grand Total                            | (33,894)                               | (29,452)                               | (49,623)                               |

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ANNEXURE-II ANNEXURE REFERRED TO IN REPLY TO PARTS (c) TO (e) OF UNSTARRED QUESTION NO.  4917 TO BE ANSWERED IN THE LOK SABHA ON 25.03.2021 **************

Summary of Debt restructuring by four States

| S. No.   | State         | Total Bonds issued by State in FY16, FY17   | Total Bonds issued by Discom in FY16, FY17   |
|----------|---------------|---------------------------------------------|----------------------------------------------|
| 1        | RAJASTHAN     | 59,722                                      | 12,368                                       |
| 2        | UTTAR PRADESH | 39,133                                      | 10,377                                       |
| 3        | JHARKHAND     | 6,136                                       | -                                            |
| 4        | MAHARASHTRA   | 4,960                                       | -                                            |
| TOTAL    | TOTAL         | 1,09,951                                    | 22,745                                       |

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ANNEXURE-III ANNEXURE REFERRED TO IN REPLY TO PART (f) OF UNSTARRED QUESTION NO.   4917 TO BE ANSWERED IN THE LOK SABHA ON 25.03.2021

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UDAY targets of AT&C Loss with achievements

| State / Discom   | 2018-19        | 2018-19         | 2017-18        | 2017-18         | 2016-17        | 2016-17         |
|------------------|----------------|-----------------|----------------|-----------------|----------------|-----------------|
|                  | MoU Target (%) | Achievement (%) | MoU Target (%) | Achievement (%) | MoU Target (%) | Achievement (%) |
| Jharkhand        | 15.00          | 28.60           | 22.00          | 32.48           | 28.00          | 35.95           |
| JBVNL            | 15.00          | 28.60           | 22.00          | 32.48           | 28.00          | 35.95           |
| Maharashtra      | 14.98          | 14.73           | 15.61          | 19.26           | 16.74          | 22.73           |
| MSEDCL           | 14.98          | 14.73           | 15.61          | 19.26           | 16.74          | 22.73           |
| Rajasthan        |                | 28.26           |                | 24.05           |                | 27.33           |
| AVVNL            | 15.00          | 23.21           | 17.50          | 23.09           | 20.00          | 25.19           |
| JdVVNL           | 15.00          | 35.12           | 16.50          | 23.47           | 18.00          | 26.16           |
| JVVNL            | 15.00          | 25.93           | 18.50          | 25.18           | 22.00          | 29.79           |
| Uttar Pradesh    | 19.36          | 33.15           | 23.63          | 37.80           | 28.27          | 40.91           |
| DVVNL            | 20.44          | 37.12           | 24.83          | 38.89           | 30.30          | 40.62           |
| KESCO            | 19.37          | 15.13           | 24.11          | 22.52           | 29.44          | 25.10           |
| MVVNL            | 19.45          | 40.64           | 23.20          | 45.29           | 27.80          | 47.27           |
| PaVVNL           | 17.53          | 22.27           | 20.63          | 25.97           | 22.99          | 29.73           |
| PuVVNL           | 20.65          | 39.64           | 26.92          | 47.89           | 34.19          | 53.19           |

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