NEW DELHI : India’s state-owned electricity distribution companies ( discoms ) seem to be turning a corner, with 15 discoms of Andhra Pradesh, Gujarat, Tamil Nadu, Karnataka, Uttar Pradesh, West Bengal, Manipur, and Madhya Pradesh reducing their losses by more than 10% in 2019-20. “Average AT&C loss level of rated discoms has improved to 21.16% in FY20 compared with 21.85% in FY19," the ratings report said. “Overall, 16 power distribution entities (out of a total of 41) have shown improvement in their cost coverage ratios. Out of these, 6 discoms have shown improvement of more than 10% in their cost coverage ratio," the report added. The annual exercise for state power discoms is aimed at helping banks and financial institutions assess risk while lending to the distribution utilities.

Source: Mint July 18, 2021 06:11 UTC