Discoms' aggregate technical & commercial losses down in FY22

07 Dec 2022 CW Team

Aggregate technical and commercial (AT&C) losses of power distribution utilities declined to 17 per cent in 2021-22 from 22 per cent in the previous year.

Reduction in AT&C losses improves finances of utilities (discoms), enabling them to better maintain the system and buy power as per requirement and benefit the consumers, a power ministry statement said. The AT&C loss and ACS-ARR (Average Cost of Supply-Average Realizable Revenue) gap are key indicators of discoms' performance.

Ministry of Power has taken a number of measures to improve the performance of utilities, the statement said. Preliminary analysis of data for 2021-22 of 56 discoms contributing to more than 96 per cent of input energy, indicates that AT&C losses have declined significantly to 17 per cent in FY2022 from 22 per cent in FY2021, it stated.

Loss-making discoms will not be able to obtain financing from PFC (Power Finance Corporation) and REC until they develop an action plan for reducing the losses within a specific timeframe and obtain their state government's commitment to it, according to revised prudential standards adopted by the ministry on September 4, 2021.

The ministry also decided that a loss-making discom will only be eligible for future assistance under any scheme for strengthening the distribution system by discoms if it agrees to reduce its AT&C losses / ACS-ARR gap to predetermined levels within a predetermined timeframe.

According to the Revamped Distribution Sector Scheme (RDSS), funding under the programme will only be made available if the discom agrees to follow a predetermined trajectory for loss reduction.

Additionally, the ministry has collaborated with distribution firms to secure the funds required under RDSS for implementing the loss reduction measures.

Also Read

JK Cement begins commercial production at Panna

UltraTech Cement commissions new cement capacities

Aggregate technical and commercial (AT&C) losses of power distribution utilities declined to 17 per cent in 2021-22 from 22 per cent in the previous year. Reduction in AT&C losses improves finances of utilities (discoms), enabling them to better maintain the system and buy power as per requirement and benefit the consumers, a power ministry statement said. The AT&C loss and ACS-ARR (Average Cost of Supply-Average Realizable Revenue) gap are key indicators of discoms' performance. Ministry of Power has taken a number of measures to improve the performance of utilities, the statement said. Preliminary analysis of data for 2021-22 of 56 discoms contributing to more than 96 per cent of input energy, indicates that AT&C losses have declined significantly to 17 per cent in FY2022 from 22 per cent in FY2021, it stated. Loss-making discoms will not be able to obtain financing from PFC (Power Finance Corporation) and REC until they develop an action plan for reducing the losses within a specific timeframe and obtain their state government's commitment to it, according to revised prudential standards adopted by the ministry on September 4, 2021. The ministry also decided that a loss-making discom will only be eligible for future assistance under any scheme for strengthening the distribution system by discoms if it agrees to reduce its AT&C losses / ACS-ARR gap to predetermined levels within a predetermined timeframe. According to the Revamped Distribution Sector Scheme (RDSS), funding under the programme will only be made available if the discom agrees to follow a predetermined trajectory for loss reduction. Additionally, the ministry has collaborated with distribution firms to secure the funds required under RDSS for implementing the loss reduction measures. Also Read JK Cement begins commercial production at Panna UltraTech Cement commissions new cement capacities

Real Estate

11 May 2026

Casagrand Launches 41-Acre Highcity Project in Chennai

Casagrand has launched Casagrand Highcity, a 41-acre integrated residential development on Chennai’s Outer Ring Road (ORR), marking the company’s largest residential project to date.The project will comprise over 4,000 two and three BHK apartments across four G+22 towers and is positioned as one of the largest organised residential developments in the ORR corridor.Located along Chennai’s emerging residential and infrastructure growth belt, the project benefits from connectivity to IT hubs including Navalur, Siruseri SIPCOT and Porur, as well as industrial clusters such as Sriperumbudur, ..

Real Estate

11 May 2026

Brigade, Marriott Open Courtyard Kochi Infopark

Brigade Hotel Ventures (BHVL) and Marriott International have opened Courtyard by Marriott Kochi Infopark, a rebranded and upgraded hotel formerly operating as Four Points by Sheraton Kochi Infopark.Located in Kakkanad adjoining Infopark Kochi, the 218-room property strengthens Brigade’s hospitality portfolio in one of the city’s key IT and commercial corridors. The hotel is positioned to cater to corporate, MICE and leisure travellers visiting Infopark, SmartCity and other business hubs in Kochi.The property offers flexible workspaces, smart TVs and high-speed WiFi across rooms and suites..

Real Estate

11 May 2026

WorkEZ Expands South India Portfolio to 1.7 Mn Sq Ft

Work Easy Space Solutions (WorkEZ) has expanded its managed workspace portfolio to approximately 1.7 million sq. ft. across 12 operational buildings and two upcoming developments, strengthening its footprint across South India.The expansion includes the addition of 65,000 sq. ft. at Phoenix One National Park in Chennai and the company’s entry into Kochi through a partnership with Lulu Developers, adding another 70,000 sq. ft.WorkEZ has also signed a 0.4 million sq. ft. development in Coimbatore with Veeras Infra following the successful leasing of 0.1 million sq. ft. in the first phase. The ..