Power companies eat up PSUs' profit in Chhattisgarh

Heavy losses incurred by the state-run power companies in Chhattisgarh had resulted in the performance of the state’s public sector undertakings (PSUs) suffering in general.

In Chhattisgarh, 21 PSUs, including 20 companies and one statutory corporation (all working), have been registered. None of the state’s PSUs have been listed in the stock exchanges. The working PSUs registered a turnover of Rs 15,510.96 crore according to the latest finalised accounts. The turnover was equal to 7.38% of the state gross domestic product for 2014-15.

According to the latest finalised accounts as on September 30, 2015, underlined in the Comptroller and Auditor General report, 12 PSUs had earned profit of Rs 111.55 crore, while six incurred total loss of Rs 1,344.19 crore. That had resulted in working PSUs losses in the state to the tune of Rs 1,232.64 crore. The accounts of remaining PSUs were not finalised.

The accumulated profit of the state PSUs had turned into accumulated loss and that was mainly due to the losses incurred by Chhattisgarh State Power Distribution Company Limited (CSPDCL) and Chhattisgarh State Power Generation Company Limited (CSPGCL). While CSPDCL booked a loss of Rs 630.42 crore, CSPGCL incurred a loss of 683.96 crore in 2014-15, according to the latest finalised accounts. The loans outstanding against CSPDCL and CSPGCL were Rs 1,540.10 crore and Rs 9,677.58 crore, respectively.

In last five years, investment in the PSUs has grown by a whopping 182.70% from Rs 9,178.35 crore to Rs 25,947 crore. In 2010-11 and 2011-12, the PSU had registered a profit of Rs 315.59 crore and Rs 309.44 crore, respectively. It, however, slipped into red from 2012-13, when the PSUs incurred a loss of Rs 1,876.98 crore. The loss was reduced to Rs 420.14 crore in 2013-14.

“Why the power distribution company is incurring a loss is a matter of high level probe,” T T John, Convenor of Chhattisgarh Electricity Board Employees’ Union, said. The number of consumers had increased while the power tariff has also gone up, he said, adding that the power infrastructure had also strengthened and there was no reason for the distribution company to bear the loss. John added that the loss of the generation company could be justifiable as the plants were decades old and there were issues related to raw material.

The power company officials did not respond to the queries sent by Business Standard for their comments on the issue.