Losses of power utilities mount

Panipat, November 2
Padamjit Singh, chairman of the All-India Power Engineers Federation, has said that the power sector reforms had failed on all fronts. Loans and losses of the power utilities had increased tremendously. He also condemned the move to hand over distribution of power in industrial cities to private franchisees.

Daljit Singh, secretary of the Haryana Power Engineers Association, said losses of power utilities had increased to Rs 7,100 crore while loans had touched the Rs 15,268 crore mark. The banks had refused further loans to utilities.

The defaulting amount of distribution companies was Rs 2100 crore, forcing them to take a short-term loan from HUDA. The cash deficit of distribution companies was Rs 400 crore per month. Both distribution companies owed Rs 2750 crore to HPGCL for power purchase. — TNS