Punjab State Power Corporation Limited (PSPCL) has been adjudged the "Best Performing Utility in Power Sector" by the Union power ministry.
PSPCL has been awarded a rating of A+ by the power ministry in its 'Third Annual Integrated Rating Exercise' covering 40 state power distribution utilities across India and means that according to the ministry, the PSPCL has very high operational and financial capability.
Apart from Punjab, Gujarat is the second state which has got A+ Rating.
PSPCL chairman-cum-managing-director KD Chaudhri said, "This is a proud moment and is an important step towards recognising the improvement made by power distribution utilities."
Minister of state for power, coal and new and renewable energy Piyush Goyal has formally announced the award.
Chaudhri added the rating of distribution utilities was carried out after key factors like financial performance audited accounts, cross-subsidy, reforms measures, regulatory environment, forward-looking parameters etc.
"We have been assigned the best rating based upon net profit reported in the last two years and several other factors," said Chaudhri.
The CMD added that the corporation had been able to improve upon its revenue realised vis-a-vis expenditure booked which has led to an improvement in its cost coverage. PSPCL has shown improvement in its financial health by coming out of loss of `1,640 crore in 2010-11 to a net profit of about `260 crore in 2012-13 and `250 crore in 2013-14.
"Its level of cross subsidy has also gone below 20%," he added.