Report of Indian Institute of Public Administration ... - Ministry of Power

Karnataka
ACHIEVEMENTS IN FINANCIAL OPERATIONS BY DISCOMs
The following Table indicates the financial performance of DISCOMs:
DISCOM
Table: Financial Performance of DISCOMs
Income
excluding
subsidy
Total
expenditure
PBT PAT Cash
profit
3.37
Cash
profit
without
subsidy
(Rs crore)
Cash Profit
on Revenue
and Subsidy
Received basis
2002-03
BESCOM 2,375 2,670 20 18 89 123 (225)
GESCOM 502 850 9 8 35 20 (43)
HESCOM 713 1,198 10 10 44 (7) (174)
MESCOM 1,053 1,204 12 11 59 (3) (172)
Total 4,643 5,922 51 47 227 133 (614)
2003-04
BESCOM 3,265 3,432 21 13 107 5 (104)
GESCOM 666 1,081 7 (14) 41 11 (45)
HESCOM 1,324 1,540 21 19 69 (91) (65)
MESCOM 889 1,554 17 15 81 18 (122)
Total 6,144 4,607 66 33 298 (57) (336)
2004-05
BESCOM 3,656 3,567 88 81 180 366 238
GESCOM 693 1,158 4 (4) 37 (38) (103)
HESCOM 948 1,755 21 9 102 (146) (329)
MESCOM 1,446 1,698 19 18 90 58 (36)
Total 6,743 8,088 132 104 409 240 (528)
(Source: PFC)
The above Table shows that there has been general improvement in the overall
financial performance of DISCOMs, which indicates the merits of the restructuring
relating to PBT, PAT, Cash Profit, etc. However, the companies have to redouble their
efforts to recover revenue and subsidy on time. Moreover, there is need to focus on
the financial performance of HESCOM and GESCOM in particular. These companies
have large agricultural segments compared to BESCOM and MESCOM, and would
benefit from a sound policy for universal metering and improved billing and
collection. These two companies were also recipients of heavy subsidy as a percentage
of sales revenue ranging from 68.56 per cent to 93.51 per cent, which are
unsustainable, and need early remedial action to improve their performances.
Another area where some improvement was noticed from year-to-year relates to
collection efficiency. This factor ranged from 80.55 per cent in the case of HESCOM
to 96.42 per cent in the case of BESCOM (2004-05). However, the debtors to sale
ratio have gone up. This aspect needs to be examined.