Dec 05, 2024

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The Union Power Ministry presented information in the Rajya Sabha: The country's state-run power companies have a loss of Rs 28.48 lakh crore in 5 years.

Gujarat is the only state in the country whose government power distribution companies have been in surplus for five consecutive years. Out of the four companies, South Gujarat Power Company is the best performing company in the country at Rs 546 crore in the year 2022-23. Against which the West Gujarat Power Company is continuously reporting losses. According to a reply tabled by the Central government in the Rajya Sabha, the power supply companies acquired by the states in the country have reported a loss of Rs 28.48 lakh crore in five years. Apart from Gujarat, the power company of West Bengal has been in a general surplus in the last four years. All the remaining states have reported losses. In Gujarat, power is supplied by private company Torrent Power in Surat and Ahmedabad and the company has registered continuous growth in both the cities. Why do government power companies suffer losses? | The Ministry of Power has cited non-implementation of Fuel-Power Purchase Cost Adjustment (FPPCA) as the biggest reason behind the loss. Apart from this, power companies are also facing losses due to delay in tariff orders, poor billing-collection process and non-implementation of recovery process properly. In 2022-23, state-owned power companies reported a loss of Rs 6.77 lakh crore. Tamil Nadu reported the highest loss of Rs 1.63 lakh crore, Followed by Rajasthan at Rs 92,000 crore and Rajasthan at the third place at over Rs 92,000 crore. Apart from this, Uttar Pradesh is included in the top states with 92 thousand crores, Telangana with 61 thousand crores. The total loss of these five states is Rs 4.73 lakh crore, which is 70 per cent of the country's loss.

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Divyabhaskar

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