Estimates of discoms’ losses of Rs 90,000 crore for FY21 seem to be grossly inflated: Power ministry

NEW DELHI: The ministry of power on Wednesday said speculations about power distribution companies (discoms) having losses of Rs 90,000 crore in 2020-21 “seem to be grossly inflated”.

Recently, some reports pointed to speculations regarding discoms achieving loss levels of Rs 90,000 crore in 2020-21, the power ministry said in a statement.

These speculations trace their origins to a report published by rating agency ICRA on the power distribution sector in March 2021, the ministry said.

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.