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

Resources

04 Jun 2026

ULCCS Showcases Cooperative Model at UN Symposium

Uralungal Labour Contract Co-operative Society (ULCCS) showcased its community-led development model at the United Nations Headquarters in New York, where it participated as a panellist at the International Symposium on Cooperative Financial Institutions held on 28–29 May 2026.Jointly organised by the United Nations Department of Economic and Social Affairs (UN DESA), the International Cooperative Banking Association (ICBA), and the International Cooperative Alliance (ICA), the symposium was held under the theme ‘Fuelling Inclusive and Equitable Growth’ and brought together policymakers,..

Infrastructure Transport

04 Jun 2026

Delhi Airport to Finalise 20-Year Master Plan

Delhi International Airport Ltd (DIAL) is finalising a 20-year master plan to guide long term infrastructure and operational development at Indira Gandhi International Airport, an official said. The operator expects the plan to reflect changes in the airline industry, shifts in the competitive landscape and evolving infrastructure requirements across terminals, airside and support services. The official said the document is likely to be ready in the next two to two-and-a-half months as the operator moves through planning stages. The plan will be prepared after consultations with airport users ..

Real Estate

04 Jun 2026

Aadhar Housing Finance Targets Rs 500 bn AUM By FY29

Aadhar Housing Finance has set a target to raise its asset under management to Rs 500 billion (bn) by the end of FY29, aiming to achieve this over the next three financial years through an 18-20 per cent loan growth trajectory. The firm focuses on the low-income segment with a ticket size of less than Rs 1.5 million (mn) and has relied on that segment to drive expansion. The company closed FY26 with an AUM of Rs 305.71 bn, reflecting the expansion in recent years, and it reported a net profit rise of 22 per cent to Rs 11.08 bn. Management indicated that gross non-performing assets stood at 1.0..