The Hindu Business Line : 7 SEBs reduce cash losses by Rs 3,000 cr

Led by West Bengal, Gujarat and Andhra Pradesh, the distribution utilities of seven States have managed to collectively reduce cash losses to the tune of nearly Rs 3,000 crore over the last two financial years, according to Power Ministry officials.

The loss reduction claims, duly vetted by the Centre, have entitled these SEBs to a `matching grant' (from the Government) , equalling half the amount of loss reduction.

Most States have managed to bring about loss reduction by ramping up metering efforts and increasing collection efficiency.

"While Haryana and West Bengal have intensified their metering efforts over the last three years, Andhra Pradesh and Rajasthan have brought in more accountability into the revenue collection exercise by splitting up their utilities," a Government official said.

Under the matching grant component of the Centre's Accelerated Power Development and Reforms Programme (APDRP) scheme, the seven SEBs are entitled to Rs 1,471.33 crore against a cash loss reduction of Rs 2,942.66 crore.

Under APDRP, SEBs are entitled to receive 50 per cent of the losses reduced by them in a year from the Centre in the form of a grant.

Of the States' entitlement for the last two years, the Centre has already released Rs 1,020.52 crore to the SEBs in recognition of the losses reduced by them during the period.

Among the seven forward-looking SEBs, the West Bengal distribution utility has taken the lead and has claimed a reduction in losses worth Rs 751.52 crore in 2002-03 and 2003-04.

The Gujarat SEB has achieved a loss reduction of Rs 768.86 crore over the last two financial years, while the Andhra distribution utilities have claimed a loss reduction of 530.22 crore.

Maharashtra and Rajasthan have also reduced cash losses by Rs 275 crore during the period, while Haryana has claimed a cash loss reduction of Rs 211 crore.

On the flip side, the distribution utilities of Bihar and Uttar Pradesh have not managed to stem the losses.

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