Gridco profit jumps 51% on higher hydro power output

Cost of power purchase is one of the highest expenditure occured by Gridco

State-run power trader Gridco Ltd posted Rs 48.25 crore net profit in 2013-14 financial year, up by 51 per cent from previous year’s figure, on the back of higher revenue from inter-state power trade and better availability of cheaper hydro power, officials said.

The company had reported a remarkable turnaround in its fortunes in 2012-13 by posting a net profit of Rs 31.79 crore after a huge loss Rs 936.81 crore in 2011-12. This turnaround was helped by waiver of government dues to the tune of Rs 443.7 crore, according to the CAG report. “Availability of ample hydropower meant we had to spend lesser amount on power purchase. And it improved our profit margin in 2013-14,” said B Mohapatra, director (finance) with Gridco.

Cost of power purchase is one of the highest expenditure incurred by Gridco, roughly eating away around 83 per cent of each rupee earned by the company, as per the financial data for 2013-14. Last year, state-run generator Odisha Hydro Power Corporation (OHCP) surpassed its annual production target of 5,676 million unit (MU), prescribed by regulator OERC. The rise in power generation was supported by low pressure-induced rains that lashed the southern part of the state towards the fag end of monsoon season which ended in October 2013.