DHBVN wipes out losses, posts profit for first time

Vijay Mohan

Advertisement

Tribune News Service

Chandigarh, July 9

The Power Ministry’s review of the Ujjawal DISCOM Assurance Yojana (UDAY) in Haryana has revealed that Dakshin Haryana Bijli Vitran Nigam (DHBVN), one of the two power distribution companies in the state, has not only wiped out its losses for the first time, but also posted a profit of Rs 78 crore in the first half of 2016-17.

UDAY is a financial revival package for electricity distribution companies (DISCOMs) initiated by the Central Government to find a permanent solution to their financial problems. Under the scheme, the state governments owning the DISCOMs can take over 75 per cent of their debt and pay back lenders by selling bonds.

The states have issued bonds worth Rs 2.32 lakh crore so far, according to data made available by the Bhakra Beas Management Board (BBMB) here. The scheme was launched in November 2015.

The review also shows that the aggregate technical and commercial loss from the electricity distribution has come down to 25.9 per cent in 2016-17 from 29.8 per cent in 2015-16. Further, the power purchase cost has reduced to Rs 5.01 per unit 2016-17 from Rs 5.05 in 2015-16. Similarly, losses in Rajasthan, Tamil Nadu and Uttar Pradesh have also come down.

Under the scheme, the total liability opted for restructuring by the states through issuance of bonds was Rs 2.69 lakh crore, involving 15 states. Bonds issued till date cover 86 per cent of the debt to be taken over by the states, according to the latest review by the Power Ministry.

At the time of UDAY’s launch, the total debt of all state owned DISCOMs was Rs 3.95 lakh crore. The 26 states and one UT which have joined the UDAY scheme account for total outstanding debt of Rs 3.82 lakh crore. “Thus, as much as 97 per cent of the total outstanding debt of all state DISCOMs has been covered under the scheme,” said the BBMB.