Gujarat tops discom ranking again
In the ninth round of ranking of power distribution companies (discoms) by the Power Finance Corporation (PFC), Gujarat utilities have topped the list for the ninth year in a row.
The five Gujarat discoms are the only ones to be rated A+, the highest rank. Haryana and Uttar Pradesh discoms have progressed in their ranking since last year by jumping to a higher rating.
Releasing the discoms’ rating, R K Singh, Union power minister, said the sector will benefit from a fair and accurate assessment of the true position of distribution. This, in turn, will help in assessing and improving its performance.
Among the discoms which are the lowest rated are Meghalaya Power Distribution Corporation, Jharkhand Bijli Vitran Nigam, Manipur State Power Distribution Company, Tripura State Electricity Corporation, Tamil Nadu Generation and Distribution Corporation and Jodhpur Vidyut Vitran Nigam.
The common reasons for their poor rating include high aggregate technical and commercial (AT&C) losses, high overdues towards generating companies and non-filing or delayed submissions of tariff petitions.
Speaking about the recently approved ~3 trillion discoms reforms scheme, Singh said, “The scheme envisages providing financial assistance to discoms for strengthening and modernising the supply infrastructure. States may access funds under the scheme for strengthening their distribution systems. Where the discoms are in losses, states will be able to draw funds under the scheme only if they institute measures to reduce these losses. Therefore, the funding is linked to reforms. There has already been improvement in the performance of discoms. This scheme will take the improvements further.”