Utilities in the Union territory of Jammu and Kashmir (J&K) reported the highest losses among power distribution companies (discoms) in India, while some in the east and the northeast also incurred high losses, underscoring the lack of power sector reforms in these markets.
However, 15 state discoms in Andhra Pradesh, Gujarat, Tamil Nadu, Karnataka, Uttar Pradesh, West Bengal, Manipur and Madhya Pradesh narrowed their losses by more than 10% in 2019-20. Delhi clocked the lowest loss among discoms.
However, the narrowing of India’s gap between the cost of electricity bought (average cost of supply, or ACS) and supplied (average realizable revenue, or ARR) to 28 paise per unit in 2019-20 led to a fall in discom losses by more than a third to ₹38,000 crore from ₹61,360 crore in FY19, according to government data.
J&K recorded aggregate technical and commercial (AT&C) losses of 60.5% in the year ended March 2020. The high loss figure of J&K was followed by Nagaland (52.9%), Arunachal Pradesh (45.7%), Bihar (40.4%) and Tripura (37.9%).