<p>Dismissing the report about power distribution companies (discoms) having suffered losses of Rs 90,000 crore in 2020-21, the Union Ministry of Power on Wednesday said it was a grossly inflated figure.</p>.<p>As per the audited annual accounts of Power Distribution Utilities, AT & C losses have come down from 23.5% in FY 2016-17 to 21.83% in FY 2019-20. The annual profit after tax (PAT) figures, being negative, have also shown improvement from Rs 33,894 crore (loss) in 2016-17 to Rs 32,898 crore (loss) in 2019-20, the Ministry said.</p>.<p>There was a report published by rating agency ICRA on the power distribution sector in March 2021 which pointed to speculations regarding discoms achieving loss levels of Rs 90,000 crore in 2020-21, the power ministry said in a statement.</p>.<p>While this report indicates profit after tax (PAT) figures of negative Rs 50,000 crore (loss) for 2018-19, which is consistent with the PFC's annual utilities report of FY19. The projections of PAT figures of 2019-20 are shown to increase to the tune of negative Rs 60,000 crore, it stated.</p>.<p>This report further builds on these losses and projects total discom losses of Rs 90,000 crore in 2020-21, it further said.</p>.<p>One of the reasons ascribed to this speculation is the decline in electricity volume sales in the year 2020-21 due to the Covid-19-induced lockdown, the ministry said.</p>.<p>This report also mentions a Rs 30,000 crore increase in discom dues to its creditors from March 2020 to December 2020. It perhaps assumes this increase in payables, which is essentially a cash flow problem, to directly reflect into additional discoms losses in 2020-21 over the projections of 2019-20, the ministry said.</p>.<p>"As a result of the above erroneous projections by ICRA, the loss figures of Rs 90,000 crore for FY2021 seem to be grossly inflated," the ministry said.</p>.<p>The Ministry also said the measures already taken by the government would further incentivise the discoms to reform, perform, and transform in an efficient and cost-effective manner, it said.</p>.<p>The Government of India has been taking significant steps to improve the operational efficiencies and financial viability of discoms, the ministry added.</p>
<p>Dismissing the report about power distribution companies (discoms) having suffered losses of Rs 90,000 crore in 2020-21, the Union Ministry of Power on Wednesday said it was a grossly inflated figure.</p>.<p>As per the audited annual accounts of Power Distribution Utilities, AT & C losses have come down from 23.5% in FY 2016-17 to 21.83% in FY 2019-20. The annual profit after tax (PAT) figures, being negative, have also shown improvement from Rs 33,894 crore (loss) in 2016-17 to Rs 32,898 crore (loss) in 2019-20, the Ministry said.</p>.<p>There was a report published by rating agency ICRA on the power distribution sector in March 2021 which pointed to speculations regarding discoms achieving loss levels of Rs 90,000 crore in 2020-21, the power ministry said in a statement.</p>.<p>While this report indicates profit after tax (PAT) figures of negative Rs 50,000 crore (loss) for 2018-19, which is consistent with the PFC's annual utilities report of FY19. The projections of PAT figures of 2019-20 are shown to increase to the tune of negative Rs 60,000 crore, it stated.</p>.<p>This report further builds on these losses and projects total discom losses of Rs 90,000 crore in 2020-21, it further said.</p>.<p>One of the reasons ascribed to this speculation is the decline in electricity volume sales in the year 2020-21 due to the Covid-19-induced lockdown, the ministry said.</p>.<p>This report also mentions a Rs 30,000 crore increase in discom dues to its creditors from March 2020 to December 2020. It perhaps assumes this increase in payables, which is essentially a cash flow problem, to directly reflect into additional discoms losses in 2020-21 over the projections of 2019-20, the ministry said.</p>.<p>"As a result of the above erroneous projections by ICRA, the loss figures of Rs 90,000 crore for FY2021 seem to be grossly inflated," the ministry said.</p>.<p>The Ministry also said the measures already taken by the government would further incentivise the discoms to reform, perform, and transform in an efficient and cost-effective manner, it said.</p>.<p>The Government of India has been taking significant steps to improve the operational efficiencies and financial viability of discoms, the ministry added.</p>
