Power sector badly affected by Corona, increased debt burden on energy distribution companies

The power sector of the country is in a better position than expected today and the entire country is getting enough power supply almost according to the demand. However, the power sector was badly affected during the Corona period. During this period, the debt burden on the power distribution companies (discoms) increased on one hand and on the other hand their revenue collection also decreased.

According to the information, the level of loss due to transmission and distribution (T&D) in the power sector has increased from 20.73 percent to 22.73 percent in the year 2019-20. The loss to DISCOMs on sale of electricity per unit has increased from 24 paise to 41 paise. These figures have been given in the annual report on power utilities released on Friday by Power Finance Corporation (PFC), an undertaking of the Ministry of Power.

The report has been released when the annual meeting of the power ministers of all the states and union territories is being held in Udaipur under the aegis of the Union Ministry of Power. In this meeting, the Union Power Minister has said that by the year 2030, the demand for electricity in the country will double. To achieve this, all the states will have to cooperate together. He said that for the last 4-5 months, the demand for electricity in the country has increased at a tremendous rate of 11 per cent, but due to the promptness of the government, sufficient power is available in most parts of the country. There is an energy crisis all over the world but it is not so in India.

Despite the wild increase in coal prices, there has been no major increase in electricity prices in the country. As far as the PFC report is concerned, it has data for the year 2020-21, but it clearly shows that many problems which were already going on in the power sector of the country, became more serious during the Corona period. The loss to the discom had increased by 66 per cent to Rs 50,281 crore during this period. Electricity sold by DISCOMs declined by 1.88 per cent but revenue from power sales declined by 1.76 per cent. Due to this the loss per unit of electricity supply has increased from 24 paise to 41 paise.