Power sector distribution companies' losses for the first half of FY19 stand at more than Rs 11,000 crore against Rs 8,500 crore in the same period last year, said power secretary Ajay Kumar Bhalla.
Bhalla said that the losses for FY19 could be around Rs 15,000-17,000 crore against Rs 15,000 crore in FY18.
In an interview with CNBC-TV18, Bhalla discussed the health of the power sector distribution companies (DISCOMs) and the likely focus areas of the power sector for 2019.
“Half year figures are showing a little deteriorating trends as far as Ujwal DISCOM Assurance Yojana (UDAY) parameters are concerned. Though on Aggregate Technical and Commercial (AT&C) losses, presently, we are at the same level as in the previous half year at around 21 percent. If I total up all the losses of DISCOMs ... first half losses were Rs 8,500 crore last year FY18, this time it has become more than Rs 11,000 crore. So there is a little disturbing trend that there are losses which have increased,” he said.
“If we come to the outstanding dues, it has definitely increased over the last six months – from June to November ... some of the states have done well in billing efficiencies, they have reduced losses but then there are other states which have increased also,” he added.
“As far as funding is concerned of these DISCOMs, we are also sticking to the UDAY norms that beyond a point, we will not fund your losses. So state government will have to fund those losses in any case and some of the states have done it. As of now, we are insisting on it that they need to stick to the UDAY parameters,” said Bhalla.