Discoms help save Delhi over Rs 1.2 LK cr in 19 years


New Delhi, Aug 3 | Power discoms have helped the national capital save over Rs 1.2 lakh crore since the privatisation of the Delhi Vidyut Board in 2002, industry sources said.

The electricity board’s privatisation completed 19 years in July 2021. Post privatisation, Delhi power distribution is run by BSES discoms and one by the Tata Power.

People of Delhi have witnessed significant transition from long hours of power outages till 2002 to reliable round-the-clock power supply currently, according to industry. So confident has NGT been of Delhi’s reliable power-supply, it has banned the use of diesel gensets during the winter months to control pollution.

During this time, apart from ensuring reliable power-supply, Delhi discoms also brought about a record reduction in AT&C losses. At the time of privatisation, AT&C losses in the national capital were over 55 per cent. In fact, they were as high as 63 per cent in east and central Delhi.

Currently, they are at around 7.5 per cent, a record reduction of around 48 per cent.

In the decade before privatization, the AT&C losses in Delhi had increased by 20 per cent and coupled with prolonged outages, was a reason for privatisation.

In comparison, the losses in other states are much higher. In all probability, experts say Delhi would have similar losses had the discoms not been privatized.

Reliable power-supply and record AT&C loss reduction are not the only benefit that has accrued to Delhi in these 19 years.

Out of the Rs 1.2 lakh crore saving in the past 19 years, the biggest component is AT&C loss reduction, which has saved over Rs 95,000 crore. At present, each percentage of AT&C loss reduction saves Delhi consumers around Rs 250 crore.

This is followed by the investments of around Rs 19,000 crore made by the Delhi discoms to improve the distribution network in the national capital. Currently, Delhi discoms have one of the most modern distribution networks in the country.

Had it not been for the loss reduction and investments, there would have been no savings to the Delhi consumers, and reliability of the city’s power-supply may have remained a pipedream, according to stakeholders in the power sector. And to the contrary, this money would have had to be spent/invested by the Delhi Government, just to keep the Delhi Vidyut Board afloat, and to ensure power supply to the national capital – leaving little for anything else, they said.

This is the money that has been available with the successive Delhi governments since 2002 for city’s developing – improving the infrastructure, opening more schools etc. It has also cushioned the impact of inflation on the power tariffs to an extent.

Source: IANS

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Om Mehra
Research Associate
Choice Broking

Source: Choice India


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