Discoms in BJP-ruled states may in profit next year, says Piyush Goyal

Losses have been reduced to half and by next year the discom would be in profit, says Goyal

Union Power Minister Piyush Goyal on Sunday said that distribution companies (discoms) in BJP-ruled states like Rajasthan and Uttar Pradesh are likely to become profitable by next year.

Participating in the India Today Editors Roundtable here he said that in Rajasthan when Vasundhara Raje government took charge the state discom had losses of Rs 15,000 crore.

The losses have been reduced to half and by next year the discom would be in profit, the minister said.

In Haryana, one discom is already in profit and another would be in profit next year, he said further.

"In Uttar Pradesh, we bill bring the discom into profit next year," Goyal said.

In Tamil Nadu where discom had losses of around Rs 13,000 crore that has been reduced to Rs 3,000-4000 crore last year and this year it may break even.

Speaking on GST, the minister also said that cheap coal would lower cost of power companies which would benefit discoms further.

"I will request all the discoms to pass on the benefit to end consumers," Goyal said.

The GST Council has decided to put coal in the 5 per cent slab against the present incidence of 11 per cent.