In the ongoing dispute over fixing of the cost of electricity sold in Delhi, the power companies have pressed their claim to a tariff hike with a report from SBI Caps that says the discoms are in poor financial health, thanks to a severe cash crunch.
The Delhi government went to SBI Caps for this exercise against an advice from the Delhi Electricity Regulatory Commission (DERC) last year which had favoured the Comptroller and Auditor General for an unbiased, independent scrutiny of the accounts.
The report went through the audited accounts of the discoms for the past three years and said exactly what the discoms needed to hear to strengthen their case at the court, which will hear the matter on Friday.
While no one can predict what the court will decide in the end, the discoms are hoping that this report will help tilt the balance in their favour and subsequently pave the way for a tariff hike for Delhiites.
In case of BSES Rajdhani, the biggest discom for instance, the report said the discom's good performance and profits after taxes plummeted in 2009-10. It said similar things about the other two discoms —BSES Yamuna and NDPL.
But the report also came with a disclaimer that its findings were based on data made available by the client and that the writers of the report had "not independently verified or audited the information, annual reports, or other reports collected from the client or other sources".
The report stated the three discoms had an outstanding of R3,499 crore to be trued up by the DERC by March 2010.