After a gap of five years, the Punjab State Power Corporation Limited (PSPCL) has earned a profit of Rs 1446 crore for the years 2020-21, against the loss of Rs 1,158 crores in the previous fiscal years (2019-20).
The information was shared by PSPCL chairman-cum-managing director A Venu Prasad after the Board of all directors approved the PSPCL’s annual accounts for the year 2020-21 in its meeting, which was also attended by Additional Chief Secretary (Power) Anurag Aggarwal, Principal Secretary (Finance) KAP Sinha.
At the same time, Prasad hoped that savings on financial side and improvements in operations side have their ultimate impact during tariff fixation and PSPCL would keep on serving the electricity consumers with more passion in future and keep on providing quality power supply in the State.
Sharing details, PSPCL CMD said that the main reasons of profit mainly include reduction in finance cost of Rs 1,306 crore due to UDAY scheme, increase in carrying cost of Rs 577 crore for delayed payment of subsidy, increase in grant by Rs 570 crore on account of loss funding of previous years and increase in delayed payment surcharge of Rs 156 crore from consumers.
He added that on the financial side, PSPCL’s total borrowing has decreased by four percent over previous years and finance cost has also reduced significantly due to restructuring of loans.
“PSPCL is able to earn rebate of around Rs 150 crores during 2020-21 financial year against the payments towards power purchase, by effectively and efficiently handling its working capital funds, by adopting various intensive funds management techniques,” he said.
Prasad further revealed that transmission and distribution (T&D) losses were reduced to 14.46 percent as compared to previous year figure of 14.87 percent. “In order to continue to achieve higher efficiencies, PSPCL has procured 96,000 smart meters and has already installed more than 13,000 meters at load intensive domestic, commercial and industrial premises at Mohali, Ludhiana, Zirakpur, Jalandhar, and Patiala cities by carrying out load studies,” he said.
Also applauding Punjab Government’s continuous support, Prasad said that the Government had released a huge subsidy of Rs 9,657 crores during the period, covering important sectors like agriculture, industry, and the weaker sections of the society.
“Punjab Government has provided subsidy of Rs 6,057 crores towards its commitment of free power to agriculture sector, Rs 1,990 crores towards keeping the per unit energy rate to Rs five for industrial sector, and Rs 1,610 crores towards full bill waiver (400 units for a bill of two months) of eligible SC, BC and BPL families,” he added.