MPSEB may end up earning profit
ANNUAL REVENUE requirement of MP State Electricity Board (MPSEB) presented to MP Electricity Regulatory Commission (MPERC) on April 1, 2005, indicated estimated losses of Rs 900 crore but the MPERC did not give expected hike of tariff making it difficult to recover the losses.india Updated: Mar 12, 2006 15:33 IST
ANNUAL REVENUE requirement of MP State Electricity Board (MPSEB) presented to MP Electricity Regulatory Commission (MPERC) on April 1, 2005, indicated estimated losses of Rs 900 crore but the MPERC did not give expected hike of tariff making it difficult to recover the losses.
However, the MPSEB has reduced losses of crores of rupees through loan settlement and by improving the system. Consequently there is likelihood that the Board may end up making profit, if all goes well.
Talking to Hindustan Times, sources in MPSEB office at Jabalpur informed that last year Rs 800 crore loan to LIC was reduced to Rs 500 crore through settlement, thus Rs 300 crore were saved. In this way crores of rupees have been saved by MPSEB this year, too, revealed sources. Sources added that this money, which has been saved through loan settlement, was earlier considered as loss so this would help in reducing the losses considerably.
The sources maintained that losses have been reduced through improvement in system also. It could not be said with certainty that the Board would end up making profit, but there is likelihood that at the end of financial year scenario may metamorphose completely and Board may end up paying income tax.
There are very few Electricity Boards in the country, which are running in profit. Sources revealed that last year the Board was a profit-making organisation on papers, although there may not be availability of cash. This year final position will become clear by the month of September.
Through increased tariff Rs 300 crore hike was demanded by the Board from MPERC in June 2005, the latter did not give much hike in tariff to the Board, disclosed the sources.
Revenue generation of Western Region Electricity Distribution Company from consumers of all categories has increased by about 10 per cent in past year, that is more than Rs 150 crore.
According to information received from sources in the Company, revenue generation from all consumers of the Company from April 2004 to January 2005 was Rs 1,592.36 crore and this soared to Rs 1,768.55 crore from April 2005 to January 2006, resulting in increase in revenue to the tune of Rs 176.19 crore.
Sources added that by the end of financial year there might be additional revenue generation of about Rs 400 crore in the Company.
At present there are 976 high-tension consumers, 16,4254 domestic, 22,8593 non-domestic, 31,977 low-tension industries and 45,0952 agricultural consumers in the Western Region Company. Sources reasoned that the increase in revenue is about 10 per cent although the increase in number of consumers is not large.