Lok Sabha Question No. 2501 (UNSTARRED), answered on 2025-03-13
Subject: Hike in Loss of Power Companies
Ministry: POWER
Asked by: Shri Giridhari Yadav

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.2501 ANSWERED ON 13.03.2025

## HIKE IN LOSS OF POWER COMPANIES

†2501. SHRI GIRIDHARI YADAV:

Will the Minister of POWER be pleased to state:

- (a) whether it is true that a report by the Reserve Bank of India has stated that the total loss of power companies in the country reached six point five lakh crore during the financial year 2023-24, which is two point four per cent of the Gross Domestic Product (GDP), if so, the details thereof;
- (b) whether it is true that the measures such as improving power generation, reducing transmission and distribution losses and determining tariffs based on the actual cost of power  supply  have  been  suggested  to  address  this  issue,  if  so,  the  details  of  the directives the Government proposes to reduce this loss related to GDP as a result of the losses of power companies; and
- (c) the time by which the same are likely to be issued?

## A N S W E R

THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

(a) : Yes.  The  Report  of  Reserve  Bank  of  India  (RBI)  on  'State  Finance  -  A  Study  of Budgets  of  2024-25'  states  that  the  total  accumulated  losses  of  Power  Distribution companies has grown to ₹6.5 lakh crore in 2022-23 (2.4 per cent of GDP).

The  primary  reason  for  increase  in  financial  losses  of  State-owned  Power Distribution  Utilities  in  FY  2023  was  non-implementation  of  Fuel  and  Power  Purchase Cost Adjustment (FPPCA). Other major reasons for financial losses of Power Distribution Utilities include delay in issuance of tariff orders, poor billing and collection efficiencies, under-recovery of electricity dues of State Government departments/local bodies and the tariff  subsidy.  State  wise  Accumulated  Surplus/  (Deficit)  of  Power  Distribution  Utilities from FY 2021-22 to FY 2023-24 is placed at Annexure.

- (b) & (c): Government  of  India  (GoI)  has  been  supporting  the  Power  Distribution Utilities  to  improve  their  performance  through  various  initiatives.  Some  of  the  key initiatives taken are as under:
- i. Rules for  implementation  of  Fuel  and  Power  Purchase  Cost  Adjustment  (FPPCA) and cost reflective tariff have been notified for ensuring that all prudent costs for supply of electricity are passed through.
- ii. Rules  and  Standard  Operating  Procedure  issued  for  proper  Subsidy  Accounting and their timely payment.
- iii. Revamped  Distribution  Sector  Scheme  (RDSS)  has  been  launched  with  the objective  of  improving  the  quality  and  reliability  of  power  through  a  financially sustainable  and  operationally  efficient  Distribution  Sector.  The  release  of  funds under  the  scheme  is  linked  to  States/  Distribution  Utilities  taking  necessary measures for improving their financial performance.
- iv. Additional  borrowing  space  of  0.5%  of  GSDP  is  allowed  to  the  State  if  the distribution utility implements loss reduction measures.
- v. Additional  Prudential  Norms  for  sanctioning  of  loans  to  State  owned  Power Utilities  contingent  on  the  evaluation  of  performance  of  Power  Distribution Utilities against prescribed parameters.

With collective efforts of the Centre and States/UTs, the Aggregate Technical and Commercial (AT&C) loss of distribution utilities at the national level has reduced from ~22% in FY 2021 to ~16.28% in FY 2024 and the Gap between Average Cost of Supply and  Average  Revenue  Realized  (ACS-ARR  Gap)  has  reduced  from  Rs.  0.71/kWh  to  Rs. 0.19/kWh during the same period.

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## ANNEXURE  REFERRED  IN  REPLY  TO  PART  (a)  OF  UNSTARRED  QUESTION  NO.  2501 ANSWERED IN THE LOK SABHA ON 13.03.2024

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## Accumulated Surplus/ (Deficit) of Power Distribution Utilities

(Figures in Rs Cr)

| State/ Discom    | As on March 31, 2023   | As on March 31, 2024   |
|------------------|------------------------|------------------------|
| Andhra Pradesh   | (29,218)               | (29,210)               |
| APCPDCL          | (9,726)                | (9,695)                |
| APEPDCL          | (6,911)                | (6,936)                |
| APSPDCL          | (12,581)               | (12,580)               |
| Assam            | (1,699)                | (1,324)                |
| APDCL            | (1,699)                | (1,324)                |
| Bihar            | (19,777)               | (18,503)               |
| NBPDCL           | (7,367)                | (6,261)                |
| SBPDCL           | (12,411)               | (12,242)               |
| Chhattisgarh     | (10,057)               | (10,016)               |
| CSPDCL           | (10,057)               | (10,016)               |
| Gujarat          | 935                    | 5,165                  |
| DGVCL            | 546                    | 1,504                  |
| MGVCL            | 418                    | 885                    |
| PGVCL            | (300)                  | 1,491                  |
| UGVCL            | 272                    | 1,285                  |
| Haryana          | (28,165)               | (28,001)               |
| DHBVNL           | (13,194)               | (13,071)               |
| UHBVNL           | (14,971)               | (14,929)               |
| Himachal Pradesh | (3,126)                | (3,754)                |
| HPSEBL           | (3,126)                | (3,754)                |
| Jharkhand        | (15,848)               | (18,469)               |
| JBVNL            | (15,848)               | (18,469)               |
| Karnataka        | (17,559)               | (26,109)               |
| BESCOM           | (4,480)                | (8,343)                |
| CHESCOM          | (2,686)                | (3,033)                |
| GESCOM           | (3,398)                | (4,894)                |
| HESCOM           | (7,258)                | (9,898)                |
| MESCOM           | 263                    | 59                     |
| Kerala           | (34,668)               | (35,978)               |
| KSEBL            | (34,668)               | (35,978)               |
| Madhya Pradesh   | (65,291)               | (69,301)               |
| MPMaKVVCL        | (27,110)               | (29,124)               |
| MPPaKVVCL        | (13,107)               | (13,233)               |
| MPPoKVVCL        | (25,073)               | (26,944)               |
| Maharashtra      | (31,275)               | (36,226)               |
| MSEDCL           | (31,275)               | (36,226)               |
| Manipur          | (286)                  | (295)                  |
| MSPDCL           | (286)                  | (295)                  |
| Meghalaya        | (4,259)                | (4,634)                |
| MePDCL           | (4,259)                | (4,634)                |

| Punjab                              | (10,420)   | (9,620)    |
|-------------------------------------|------------|------------|
| PSPCL                               | (10,420)   | (9,620)    |
| Rajasthan                           | (92,070)   | (91,565)   |
| AVVNL                               | (28,263)   | (27,438)   |
| JdVVNL                              | (34,488)   | (34,781)   |
| JVVNL                               | (29,318)   | (29,345)   |
| Tamil Nadu                          | (1,62,507) | (1,66,944) |
| TANGEDCO                            | (1,62,507) | (1,66,944) |
| Telangana                           | (60,922)   | (67,276)   |
| TSNPDCL                             | (18,593)   | (20,037)   |
| TSSPDCL                             | (42,330)   | (47,239)   |
| Tripura                             | (854)      | (1,171)    |
| TSECL                               | (854)      | (1,171)    |
| Uttar Pradesh                       | (82,556)   | (89,662)   |
| DVVNL                               | (28,398)   | (30,666)   |
| KESCO                               | (4,187)    | (4,733)    |
| MVVNL                               | (20,345)   | (21,715)   |
| PaVVNL                              | (10,508)   | (9,652)    |
| PuVVNL                              | (19,119)   | (22,896)   |
| Uttarakhand                         | (5,096)    | (5,435)    |
| UPCL                                | (5,096)    | (5,435)    |
| West Bengal                         | 119        | 158        |
| WBSEDCL                             | 119        | 158        |
| Dadra & Nagar Haveliand Daman & Diu | 103        |            |
| DNHPDCL                             |            |            |
| DNHDDPDCL                           | 103        |            |
| Delhi                               | 11,591     | 12,893     |
| BRPL                                | 5,244      | 6,089      |
| BYPL                                | 3,094      | 3,476      |
| TPDDL                               | 3,253      | 3,328      |
| Gujarat                             | 4,018      |            |
| Torrent Power Ahmedabad             | 3,426      |            |
| Torrent Power Surat                 | 592        |            |
| Maharashtra                         | 1,580      | 561        |
| AEML                                | 1,580      | 561        |
| Odisha                              | 517        | 824        |
| TPNODL                              | 190        | 323        |
| TPSODL                              | 124        | 161        |
| TPWODL                              | 154        | 229        |
| TPCODL                              | 49         | 112        |
| Uttar Pradesh                       | 1,293      | 1,426      |
| NPCL                                | 1,293      | 1,426      |
| West Bengal                         | 9,770      | 197        |
| CESC                                | 9,491      |            |
| IPCL                                | 279        | 197        |
| Grand Total                         | (6,45,728) | (6,92,269) |

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