The minister was of the view that the major reason for losses of discoms is inefficient billing and collections and if that is set right then every discoms would be profitable.(Sakib Ali/HT file photo. Representative image)
The minister was of the view that the major reason for losses of discoms is inefficient billing and collections and if that is set right then every discoms would be profitable.(Sakib Ali/HT file photo. Representative image)

Investment will not come in unviable power sector: Power minister R K Singh

“Investment will not come unless and until there is viability in the system, unless and until the people who put money are assured that power they generate and sell will be paid for. That is the basic problem of sustainability we are facing,” Singh said at the 93rd annual general meeting of industry chamber FICCI.
By Press Trust of India| Posted by: Harshit Sabarwal | Press Trust of India
PUBLISHED ON DEC 14, 2020 12:59 PM IST

Power minister R K Singh on Monday expressed concerns about the sustainability of state-owned loss making discoms saying investments in the power sector will not come unless there is viability in the system.

“Investment will not come unless and until there is viability in the system, unless and until the people who put money are assured that power they generate and sell will be paid for. That is the basic problem of sustainability we are facing,” Singh said at the 93rd annual general meeting of industry chamber FICCI.

Singh’s statement assumes significance as India aims to move towards higher economic growth rate which requires an efficient and vibrant power sector.

The minister further said, “I am worried about sustainability (of discoms) because a large number of discoms are loss making. Most of the state-owned discoms are loss making. None of the private-owned discoms are loss making as their aggregate technical and commercial (AT&C) losses are below norm.” The minister further explained that the discoms are not able to pay for the power supply from gencos because they are making losses, “which causes stress upstream and dampens investment”.

The minister was of the view that the major reason for losses of discoms is inefficient billing and collections and if that is set right then every discoms would be profitable.

The minister said that he has been writing to the states to shift to prepaid metering system so that human interface is removed from the billing as well as the collection process.

The minister also highlighted that states are providing power subsidy for certain set of consumers but they need to pay for that to gencos because electricity does not come free.

The minister also informed that he has put before the Finance Commission that the non-payment for power supply to gencos should be added to their contingent liability which reduces their borrowing capacity accordingly.

On disinvestment of discoms, the minister said the workers unions do not realize that discoms losses are not sustainable. The minister opined that if investments will not come and India will be a power deficit country and then how can it become an advanced country, he questioned.

On farm laws facing protests, he said these laws would help in removing intermediaries and will bring investments in agriculture.

On power demand in the country, he said it has remained five gigawatt to ten gigawatt higher on a daily basis in December so far and had recorded nearly 12 per cent growth in October year-on-year.

He also said that power availability has been improved from eleven hours to 21 hours a day which would be further increased to 24 hours in a day. He also told that India would have 65 per cent of energy from non-fossil fuels by 2030 and have already achieved 38 per cent against the target of 40 per cent.

“The Indian Power Sector is currently in a state of transition and is witnessing a rapid change in the electricity mix. India’s target of achieving 175 Gigawatts of renewable energy capacity by 2022 and 450 Gigawatts by 2030, supported by policy and regulatory push, has put India among the top countries in the world for its efforts towards promoting renewable energy sources,” Sangita Reddy, President, FICCI said.

SHARE THIS ARTICLE ON
Topics
Close
The Twitter App loads on an iPhone in this illustration photograph(Reuters)
The Twitter App loads on an iPhone in this illustration photograph(Reuters)

Twitter expects annual revenue to double in 2023

Reuters
PUBLISHED ON FEB 25, 2021 08:46 PM IST
The social network expects to reach at least 315 million monetizable daily active users (mDAU) by the fourth quarter of 2023.
Close
World Bank President David Malpass said “a prominent risk for some of the countries at the bottom, and that has to do with the difficulty of getting new investment,”(Reuters)
World Bank President David Malpass said “a prominent risk for some of the countries at the bottom, and that has to do with the difficulty of getting new investment,”(Reuters)

Debt crisis threatens developing nations, says World Bank head

Bloomberg
PUBLISHED ON FEB 25, 2021 08:19 PM IST
World Bank President David Malpass spoke before the start of a meeting of finance ministers and central bankers from the Group of 20 biggest economies on Friday.
Close
Sebi has sought data from exchanges to ascertain any irregular patterns, according to a person with direct knowledge of the matter.(PTI File Photo)
Sebi has sought data from exchanges to ascertain any irregular patterns, according to a person with direct knowledge of the matter.(PTI File Photo)

Sebi to issue guidelines related to environmental, social, corporate governance

PTI, New Delhi
PUBLISHED ON FEB 25, 2021 06:49 PM IST
Tyagi noted that certain unique trends have emerged in the wake of the pandemic.
Close
Market experts say NSE was more to blame and brokers have their hands tied in such situations. (ANI Photo)
Market experts say NSE was more to blame and brokers have their hands tied in such situations. (ANI Photo)

India's top brokerage Zerodha faces investor fury after stock exchange glitch

Reuters, Mumbai
PUBLISHED ON FEB 25, 2021 06:15 PM IST
Hundreds of traders who bought stocks via Zerodha voiced concern on Twitter, with many posting pictures showing portfolio losses due to trades squared off by the broker.
Close
The <span class='webrupee'>₹</span>4,633 crore IPO of Indian Railway Finance Corporation (IRFC) was subscribed 3.49 times on the final day of bidding on Wednesday.(Mint Archive)
The 4,633 crore IPO of Indian Railway Finance Corporation (IRFC) was subscribed 3.49 times on the final day of bidding on Wednesday.(Mint Archive)

IPOs this fiscal largely from companies resilient to pandemic: Sebi chairman

PTI
PUBLISHED ON FEB 25, 2021 06:13 PM IST
"Every IPO saw a good amount of subscription with every issue being oversubscribed by atleast more than 2 times. Six of the total 18 IPOs, that is 1/3rd of the total number of IPOs were oversubscribed more than 100 times. Of these 6 IPOs, 5 were oversubscribed around or over 150 times," Tyagi said.
Close
Telecom instability affected NSE’s online risk management system (PTI File Photo)
Telecom instability affected NSE’s online risk management system (PTI File Photo)

Day after NSE disruption, India stocks advance on expiry day

Bloomberg
PUBLISHED ON FEB 25, 2021 05:57 PM IST
The NSE Nifty 50 Index climbed 0.8% to 15,097.35 in Mumbai, a day after the bourses
Close
After introducing special subscriptions for mobile, Netflix aims at South Korea to increase its subscribers.(Bloomberg)
After introducing special subscriptions for mobile, Netflix aims at South Korea to increase its subscribers.(Bloomberg)

Netflix plans $500 million spending in Korea to crack Asia

Bloomberg
PUBLISHED ON FEB 25, 2021 05:49 PM IST
The Los Gatos, California-based company has identified South Korea as one of the keys to its success in Asia, a vast region home to more than half of the world’s population.
Close
Reddit discussion threads were buzzing again about GameStop on Thursday, with members exhorting others to pile into the stock as the rally gathers steam.(REUTERS)
Reddit discussion threads were buzzing again about GameStop on Thursday, with members exhorting others to pile into the stock as the rally gathers steam.(REUTERS)

GameStop rally builds after puzzling ice-cream cone tweet

Posted by Kunal Gaurav | Reuters
PUBLISHED ON FEB 25, 2021 05:35 PM IST
The latest moves build on Wednesday's rally in GameStop and other so-called "stonks" favoured by retail traders on social media sites such as Reddit's WallStreetBets.
Close
Boosting revenue has been Chief Executive Bill Winters' main headache in recent years, as slowing growth in many of the bank's key markets, a commodities downturn and low central bank rates all conspired to crush income.(Bloomberg)
Boosting revenue has been Chief Executive Bill Winters' main headache in recent years, as slowing growth in many of the bank's key markets, a commodities downturn and low central bank rates all conspired to crush income.(Bloomberg)

Standard Chartered restores dividend, reaffirms goals as Covid-19 halves profit

Reuters, Hong Kong
PUBLISHED ON FEB 25, 2021 03:57 PM IST
The Asia, Africa and Middle East-focused bank however warned that income in 2021 is likely to be close to last year, showing the challenge it faces to meet its modest profit goals in a world of rock-bottom interest rates.
Close
Sensex opened 100 points higher at 49,860 while Nifty traded above 14,700.(ANI)
Sensex opened 100 points higher at 49,860 while Nifty traded above 14,700.(ANI)

Sensex jumps 257 points at 51,039.31; Nifty gains 115.35 points

PTI, New Delhi, Mumbai
UPDATED ON FEB 25, 2021 04:06 PM IST
  • The 30-share BSE index ended 257.62 points or 0.51 per cent higher at 51,039.31.
Close
Hitting maximum deliveries is crucial for Tesla in order for CEO Elon Musk to meet his ambitious goal of selling 20 million cars a year by 2030.(REUTERS)
Hitting maximum deliveries is crucial for Tesla in order for CEO Elon Musk to meet his ambitious goal of selling 20 million cars a year by 2030.(REUTERS)

Tesla temporarily halts production at Model 3 line in California

Bloomberg
PUBLISHED ON FEB 25, 2021 03:36 PM IST
  • Workers on a Model 3 production line in Fremont were told their line would be down from Feb. 22 until March 7
Close
Chinese Foreign Ministry spokesman Zhao Lijian speaks during a daily briefing at the Ministry of Foreign Affairs office in Beijing.(AP)
Chinese Foreign Ministry spokesman Zhao Lijian speaks during a daily briefing at the Ministry of Foreign Affairs office in Beijing.(AP)

China says Biden's bid to shift US supply chains is 'not realistic'

Bloomberg
UPDATED ON FEB 25, 2021 03:23 PM IST
  • China dismissed efforts to shift US supply chains toward alternative sources as unrealistic, hitting back hours after President Joe Biden signed an order to review how America buys strategic goods.
Close
Finance Minister Nirmala Sitharaman also spoke about the successful dissemination of Covid vaccines to around 100 countries and highlighted the role played by the private sector in helping project India's image as a 'global friend'.
Finance Minister Nirmala Sitharaman also spoke about the successful dissemination of Covid vaccines to around 100 countries and highlighted the role played by the private sector in helping project India's image as a 'global friend'.

'Private sector has to be involved in India's growth story': FM Sitharaman

Posted by Prashasti Singh | ANI, Bengaluru
UPDATED ON FEB 25, 2021 03:10 PM IST
Finance Minister Nirmala Sitharaman also emphasized the need for involvement and participation from the private sectors in order to meet these demands.
Close
Workers sit on cotton bales being transported. The bales were packed into 42 wagons and sent to the neighbouring country via Kolkata.(REUTERS)
Workers sit on cotton bales being transported. The bales were packed into 42 wagons and sent to the neighbouring country via Kolkata.(REUTERS)

Kalahandi exports high quality cotton to Bangladesh

PTI, Bhawanipatna
PUBLISHED ON FEB 25, 2021 01:48 PM IST
This is for the first time on Wednesday when the Cotton Corporation of India (CCI) exported cotton to Bangladesh through a goods train from Junagarh Road railway station in the district.
Close
The very large rebound incorporates the view that recovery in activity will continue, with the rollout of vaccines and growing confidence in the market.(Bloomberg)
The very large rebound incorporates the view that recovery in activity will continue, with the rollout of vaccines and growing confidence in the market.(Bloomberg)

Moody's projects 13.7 pc growth in FY'22, expects 7 pc contraction this fiscal

PTI, New Delhi
PUBLISHED ON FEB 25, 2021 01:35 PM IST
For current fiscal, the US-based rating agency expects the economy to contract 7 per cent, lower than its previous estimate.
Close
SHARE
Story Saved
OPEN APP