ICRA maintains negative outlook on power distribution sector

12 Mar 2021 CW Staff

The Investment Information and Credit Rating Agency (ICRA) has maintained a negative outlook on the power distribution segment.

The consolidated debt of state power distribution companies is estimated at Rs 6 trillion in the financial year (FY) 2022, which is the highest, post the implementation of debt restructure scheme under the Ujwal Discom Assurance Yojna (Uday), ICRA told the media. This is in addition to Rs 1.27 trillion pending discom payables to power generators as of December 2020, 30% higher on a year-on-year (YOY) basis.

The credit profile of the state-owned distribution utilities continues to remain stressed due to higher level of technical and commercial (AT&C) losses compared to regulatory norms, inadequate tariffs in relation to their cost of supply, and inadequate subsidy support from the respective state governments, said ICRA.

4th Indian Cement Review Conference 2021

17-18 March

Click for event info

The credit rating agency pointed out that the credit profile of several privately-owned discoms has remained healthy, with support from superior operating efficiencies, favourable demographic profile and timely pass-through of cost variations to consumers.

The recent announcement of the revamped reforms-based result-oriented scheme in the Budget 2021 with an outlay of over Rs 3 lakh crore to be spent over five years, is directionally in line with the intent to improve the viability of state-owned discoms.

ICRA said that a big part of this outlay is expected to be towards smart meters and upgrading distribution infrastructure. The state-owned discoms could look at various measures to reduce book loss levels through improvement in distribution loss levels by use of smart meters, use of distributed solar projects for supply of power to agriculture consumers and graded tariff hikes without any tariff shock to the consumers, added ICRA.

Image Source

Also read: Unshackling the distribution business in India

The Investment Information and Credit Rating Agency (ICRA) has maintained a negative outlook on the power distribution segment. The consolidated debt of state power distribution companies is estimated at Rs 6 trillion in the financial year (FY) 2022, which is the highest, post the implementation of debt restructure scheme under the Ujwal Discom Assurance Yojna (Uday), ICRA told the media. This is in addition to Rs 1.27 trillion pending discom payables to power generators as of December 2020, 30% higher on a year-on-year (YOY) basis. The credit profile of the state-owned distribution utilities continues to remain stressed due to higher level of technical and commercial (AT&C) losses compared to regulatory norms, inadequate tariffs in relation to their cost of supply, and inadequate subsidy support from the respective state governments, said ICRA.4th Indian Cement Review Conference 202117-18 March Click for event info The credit rating agency pointed out that the credit profile of several privately-owned discoms has remained healthy, with support from superior operating efficiencies, favourable demographic profile and timely pass-through of cost variations to consumers. The recent announcement of the revamped reforms-based result-oriented scheme in the Budget 2021 with an outlay of over Rs 3 lakh crore to be spent over five years, is directionally in line with the intent to improve the viability of state-owned discoms. ICRA said that a big part of this outlay is expected to be towards smart meters and upgrading distribution infrastructure. The state-owned discoms could look at various measures to reduce book loss levels through improvement in distribution loss levels by use of smart meters, use of distributed solar projects for supply of power to agriculture consumers and graded tariff hikes without any tariff shock to the consumers, added ICRA. Image Source Also read: Unshackling the distribution business in India

Infrastructure Urban

05 Nov 2025

TBO Tek Q2 Profit Climbs 12%, Revenue Surges 26% YoY

TBO Tek Limited one of the world’s largest travel distribution platforms, reported a solid performance for Q2 FY26 with a 26 per cent year-on-year increase in revenue to Rs 5.68 billion, reflecting broad-based growth and improving profitability.The company recorded a Gross Transaction Value (GTV) of Rs 8,901 crore, up 12 per cent YoY, driven by strong performance across Europe, MEA, and APAC regions. Adjusted EBITDA before acquisition-related costs stood at Rs 1.04 billion, up 16 per cent YoY, translating into an 18.32 per cent margin compared to 16.56 per cent in Q1 FY26. Profit after tax r..

Infrastructure Energy

05 Nov 2025

Northern Graphite, Rain Carbon Secure R&D Grant for Greener Battery Materials

Northern Graphite Corporation and Rain Carbon Canada Inc, a subsidiary of Rain Carbon Inc, have jointly received up to C$860,000 (€530,000) in funding under the Canada–Germany Collaborative Industrial Research and Development Programme to develop sustainable battery anode materials.The two-year, C$2.2 million project aims to transform natural graphite processing by-products into high-performance, battery-grade anode material (BAM). Supported by the National Research Council of Canada Industrial Research Assistance Programme (NRC IRAP) and Germany’s Federal Ministry for Economic Affairs a..

Infrastructure Urban

05 Nov 2025

Antony Waste Q2 Revenue Jumps 16%; Subsidiary Wins Rs 3,200 Cr WtE Projects

Antony Waste Handling Cell Limited (AWHCL), a leading player in India’s municipal solid waste management sector, announced a 16 per cent year-on-year increase in total operating revenue to Rs 2.33 billion for Q2 FY26. The growth was driven by higher waste volumes, escalated contracts, and strong operational execution.EBITDA rose 18 per cent to Rs 570 million, with margins steady at 21.6 per cent, while profit after tax stood at Rs 173 million, up 13 per cent YoY. Revenue from Municipal Solid Waste Collection and Transportation (MSW C&T) reached Rs 1.605 billion, and MSW Processing re..