Power discom DHBVN registers Rs 78 crore profit for first time
Power distribution company Dakshin Haryana Bijli Vitran Nigam (DHBVN) has recorded a profit for first time ever since its inception in July 1999. From losses of more than ₹ 2,088 crore in 2014, the discom registered a profit of ₹78 crore in the first half of the current financial year. Now, DHBVN officials aim to double the profit by the end of current financial year.gurgaon Updated: Dec 20, 2016 11:32 IST
Power distribution company Dakshin Haryana Bijli Vitran Nigam (DHBVN) has recorded a profit for first time ever since its inception in July 1999. From losses of more than ₹ 2,088 crore in 2014, the discom registered a profit of ₹78 crore in the first half of the current financial year. Now, DHBVN officials aim to double the profit by the end of current financial year.
In comparison, Uttar Haryana Bijli Vitran Nigam (UHBVN) has reported a loss of ₹1,233 crore in the first half of financial year 2016-17 against a loss of ₹336 crore in the last financial year, reported an analysis by Rural Electrification Corporation Limited (REC).
DHBVN has been reeling under losses worth crores ever since it was created along with UHBVN and two corporations – Haryana Vidyut Prasaran Nigam and Haryana Power Generation Corporation (HPGC).
DHBVN supplies power to 11 districts of southern Haryana and has always recorded losses worth ₹2,000 crore or more due to electricity theft, non-payment of dues, transmission and distribution losses and increasing fuel surcharge.
A half-yearly analysis by REC, under Ujwal DISCOM Assurance Yojana (UDAY), has revealed that DHBVN reported a remarkable achievement with a turnaround from losses as steep as ₹471 crore in last financial year to a profit of more than ₹78 crore.
The review was conducted to ascertain the progress of various major operational and financial indicators as per UDAY on the basis of data submitted by discoms and visits by UDAY teams.
The analysis report, released early this month, pointed out that the state incurred a loss of ₹815 crore in financial year 2015-16 for both discoms combined and gave a loss projection of ₹2,911 crore and ₹1,878 crore for 2016-17 and 2017-18 respectively.
The review commended DHVBN for turnaround from loss to profit.
“We focused on replacing old and defective electric meters, placing meters outside buildings, meter sealing, check on thefts, increasing number of feeders, recovery of pending amounts and controlling transmission and distribution losses through various means. We hope to double the profit by the end of this financial year,” said Arun Kumar Verma, managing director, DHBVN.
REC also observed that DHBVN has improved on billing efficiency and reduced aggregate technical and commercial (AT&C) losses while UHBVN is falling short on this front as well.
In its review, the REC observed that a major cause of concern in Haryana was high average cost of supply (ACS) that is ₹8.37 per unit in current financial year as against the national average of ₹6.66 per unit.
The analysis observed high incidents of electricity theft in the state as the cost of energy not billed (energy lost) is ₹1.85 per unit.