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

Haryana
be on account of the waiver scheme launched by the utilities on account of which
significant arrears were recovered by the DISCOMs.
Rs Crs
100
0
-100
-200
-300
-400
-500
-179.93
-234.16
-414.09
-98.13
Profi/Loss of Discoms in Haryana
1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05
-23.28
-74.85
-34.05
-156.74
-190.79
2.41
16.9
DHBVNL UHBVNL Total Haryana Discoms
69.93
37.04
-192.58
-204.36
-396.94
(Source: HERC)
An analysis to compare the overall profitability of the DISCOMs of Haryana with
Utilities in other States has also been undertaken. The chart in Annexure-III indicates
a comparative cash profit amongst the DISCOMs. In the year 2002-03, most of the
DISCOMs like NDPL, BRPL and Haryana DISCOMs had a similar cash profit
scenario wherein the Utilities reported a profit on revenue billed basis and making a
loss when cash profit was calculated on revenue realised basis. However, most of the
utilities have been able to turn around the revenue realisation and report an increasing
cash profit even on revenue-realised basis. The DISCOMs in Haryana, on the other
hand, report an increasing negative loss trend on account of huge receivables.
Government Intervention to Reduce the Receivables
To meet the challenge of increasing receivables in the State, the Government has
introduced a scheme for current bill recovery from 17 June 2005. The scheme
provided only for recovery of current bills and waiver of arrears subject to regular
payment by the consumer for the next 20 months w.e.f. 17 June 2005. It is estimated
that after 20 months from that date, arrears of around Rs 600 crore shall be waived off.
The State Government has already started compensating the distribution companies in
monthly instalments and will compensate for the principal component of arrears.