State-owned power discoms losses may come down by a third

The operating losses of 30 state-owned power distribution companies (discoms) are expected to drop by a third in the ongoing financial year, on the back of tariff hikes in a few states, reduced power purchase costs and improved operational efficiency.

- SUDHEER PAL SINGH

The operating loss - which is the gap between average cost of supply (ACS) and average revenue realised (ARR) per unit of power - is likely to come down to a range between ₹8,000 crore and ₹10,000 crore from ₹12,000 crore and ₹15,000 crore losses that the discoms reported in the last financial year.

"Narrowing operating losses have slowed the pace of debt addition for discoms, leading to improvement in credit metrics," Crisil Ratings said in a report that analysed 30 discoms across 11 states which together meet 70 per cent of India's power demand.