14 new discoms set up in last 10 years: RK Singh informed Parliament

As many as 14 new power supply firms (discoms) came into existence during the last ten years, and there are 109 discoms in the country at present, Parliament was informed on Thursday.

Power is in the concurrent list of the Constitution, but most state utilities are engaged in the power distribution business.

"There are 180 numbers of companies presently engaged in power generation and 109 numbers of power-supplying companies (Distribution companies) in the country. 14 numbers of private power supplying companies (Distribution companies) came into existence during the last ten years," Power Minister RK Singh said in a written reply to the Lok Sabha.

During the period, Singh informed the House that six government companies turned into joint ventures.

Four state-owned discoms in Odisha have turned into joint ventures with a 51 per cent share of Tata Power and the rest with the Odisha government.

Further, two state-owed distribution companies/departments -- D&NH Power Distribution Corporation Ltd and Electricity Department, Daman & Diu -- have also turned into a single joint venture company DNHDDPDCL with 51 per cent shareholding by Torrent Power and the rest by the UT.

In another reply to the House, Singh informed that reforms undertaken by discoms under the Revamped Distribution Sector Scheme (RDSS) have started showing the desired results in the first year itself.

The RDSS was launched in July 2021 and aimed at transforming the electricity distribution sector.

The average AT&C (aggregate technical and commercial) loss of distribution utilities in the country has reduced from 22.32 per cent in FY2020-21 to 16.44 per cent in FY2021-22, Singh stated.

Similarly, he said, there has been an improvement in the average revenue realisation by the discoms.

Timely payments of subsidies and government department dues by state governments have also contributed to the increased revenue, he explained.

All these have resulted in a reduction of the ACS-ARR (cost of supply and revenue realisation) gap for discoms.

The ACS-ARR gap has also significantly reduced from Rs 0.69/kWh in FY2020-21 to Rs 0.15/kWh in FY 2021-22.

As a result, the financial health of discoms is improving and they are in a much better position to ensure quality and reliable power supply to its consumers, he stated.

The RDSS is a reform-based and results-linked scheme with an outlay of Rs 3,03,758 crore and an estimated government budgetary support (GBS) from the central government of Rs 97,631 crore.

In a separate reply, he informed that as on June 30, 2023, there are 18 numbers of coal based thermal power projects, having a total capacity of 25,440 MW, one gas-based thermal power project having a capacity of 370 MW and 42 hydro-electric projects (above 25 MW), having a total capacity of 18,033.5 MW are under construction in the country.

In addition, nuclear capacity totalling 8,000 MW is under various stages of construction. The Centre is committed to install 500 GW of renewable energy capacity by 2030.