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

Technology

29 Jul 2026

AI-Enabled Workflows Lift Profitability and Productivity

Organisations modernising frontline workflows with artificial intelligence, automation and real-time data are reporting stronger financial performance, higher productivity and improved employee engagement, according to a global study by Zebra Technologies and Oxford Economics.The research covered 1,000 senior leaders across retail, manufacturing, transportation and logistics in the US, Mexico, the UK, Germany, India, Japan, Australia and New Zealand.In transportation and logistics, 54 per cent of companies that improved picking and packing operations reported faster operational performance, wh..

Real Estate

29 Jul 2026

India Leads Global AI Readiness but Implementation Lags

Indian companies lead global averages across all eight artificial intelligence readiness indicators tracked by JLL, but only 19 per cent have started making changes to their workplaces, according to the JLL 2026 Future of Work Survey.The study found that 77 per cent of Indian business leaders expect AI to change their office requirements, creating a 58-percentage-point gap between awareness and implementation. The survey covered more than 2,200 CEOs, CFOs and real estate leaders across 21 countries during the first quarter of 2026.Despite concerns over automation, 58 per cent of Indian leaders..

Equipment

29 Jul 2026

Three WOLFF Cranes Build Riyadh Cable-Stayed Bridges

Three WOLFF 180 B luffing jib cranes are supporting the construction of two cable-stayed bridges alongside the existing Wadi Laban Bridge in Riyadh, Saudi Arabia. The project is being developed for the Royal Commission for Riyadh City and executed by the ICRC joint venture comprising IC Ictas and Al Rashid Trading & Contracting Company.The cranes are handling lifting operations including formwork, reinforcement, concrete placement, work platforms, surveying equipment and other construction materials. Each crane is fitted with a 40 m jib, reaches a hook height of 157 m and offers a maximum ..