Discom losses down 38% in FY20; may have risen in FY21

Losses of power distribution companies (discoms) were down 38% on year at around Rs 38,000 crore in FY20, Union power minister RK Singh said on Friday. The losses had surged 83% annually to Rs 61,360 crore in FY19, mainly due to delayed subsidy disbursal by state governments, inefficient billing and tariff collection and inadequate tariff hikes. The announcement was made by the minister while releasing the “Integrated Ratings for State-owned Power Distribution Utilities” for FY20.

The aggregate technical and commercial (AT&C) losses — an indicator of pilferage —improved to 21.2% in FY20 from 21.9% in FY19.