Discoms’ financials improve in 2019-20 – MoP

The Ministry of Power (MoP) has issued a statementthat state-owned discoms had posted loss after tax of Rs 328.98 billion in 2019-20, an improvement over Rs 338.94 billion recorded in 2016-17.

As per the audited annual accounts of power distribution utilities, discoms have shown an improvement in their operational and financial performance over past few years. The aggregate technical and commercial (AT&C) losses have come down from 23.5 per cent in 2016-17 to 21.83 per cent in 2019-20. The gap between average cost of supply (ACS) and average revenue realised (ARR) has also narrowed down to Rs 0.28/kWh in 2019-20 from Rs 0.33/kWh in 2016-17. The MoP further stated that the loss estimate of Rs 900 billion for 2020-21 published by media reports isgrossly inflated

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