October 27, 2020

Power firms eye revenue boost

Patna: The power distribution companies are set to usher in a good jump in revenue generated from consumers in Bihar.

The distribution companies – North Bihar Power Distribution Company Limited and South Bihar Power Distribution Company Limited – that generated around Rs 7,600 crore as revenue in the previous fiscal (2017-18) have set the target of recording around 15 per cent jump in the revenue in the current fiscal.

The companies are aiming to generate something above Rs 8,500 crore which means a little over Rs 700 crore of monthly revenue. As things have turned out to be in the first three months of the current fiscal, the power companies generated around Rs 625 crore of revenue in April, but this figure jumped to Rs 730 crore in May and the collection of the present month i.e. June indicates that revenue collection would again cross Rs 700 crore.

“Our revenue generation was comparatively lower in April because of delay in billing because a new tariff has been introduced and necessary changes were being effected in the billing software. Things have been streamlined and it is being reflected in the enhanced revenue collection,” a senior official of the Bihar State Power Holding Company Limited told The Telegraph.

The official added that this revenue was expected to witness a healthy jump as the number of power consumers was increasing continuously because of the Saubhagya scheme under which all households, willing to avail a power connection, are being provided power connection in the mission mode.

The effect of the scheme has already started reflecting in terms of enhanced number of consumers. While the two power distribution companies jointly had a little over eight million consumers at the beginning of this year, now this has crossed 10 million.

“Going by the pace of addition of new consumers we are hoping to cross the target of revenue collection for this fiscal and periodical review meetings would be conducted to revise the monthly targets,” said the official.

The official said the power companies were taking steps to bring down the aggregate transmission and commercial losses by around 6 per cent in the current fiscal.

Courtesy: The Telegraph

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