Power sector in 'neck-deep' debt: Haryana govt
Chandigarh, Mar 7: Painting a grim picture of the power sector, the Haryana government has said that state-owned power generation and distribution companies have accumulated a massive debt of Rs 38,345 crore in the last 10 years.
These firms have piled up a loss of Rs 27,333 crore in the past one decade, as per White Paper released by Haryana government here today. Unfolding the broad contents of second part of White Paper here today, the Haryana Chief Minister Manohar Lal Khattar said in the last ten years, the losses of state owned Haryana Power Generation Corporation increased by 500 per cent and debt by 200 per cent.
Likewise, the losses and debts of power distribution companies Uttar Haryana Bijli Vitran Nigam and Dakshin Haryana Bijkli Vitran Nigam increased by 2,600 per cent and 1,900 per cent respectively. Haryana Finance Minister Capt Abhimanyu said Haryana Power Generation Corporation Limited (HPGCL) had a cumulative loss of Rs 87 crore in 2004-05.
This loss increased by 500 percent to Rs 438 crore in 2013-14. Since 2004-05, the company has remained in profit for four years and in losses for six years. The Company had a total debt of Rs 2,467 crore as on March 31, 2004, which has increased over 200 percent to Rs 5,748 crore as on March 31, 2014. He said that similarly, the debt of the Haryana Vidyut Parsaran Nigam Limited (HVPNL) Company stood at Rs 2,493 crore as on March 31, 2004 and this increased to Rs 4,398 crore as on March 31, 2014.
The two companies together have an accumulated debt of Rs 10,146 crore in 2013-14, he said. Capt Abhimanyu said that power distribution companies -- Uttar Haryana Bijli Vitran Nigam (UHBVNL) and Dakshin Haryana Bijli Vitran Nigam (DHBVNL) remained in losses in all ten years since 2004-05.
The cumulative losses of both the companies together increased by 2,600 percent from Rs 1,030 crore in 2004-05 to Rs 26,912 crore in 2013-14. The accumulated debt of both companies together increased from Rs 1,458 crore as on March 31, 2004 to Rs 28,199 crore as on March 31, 2014. Out of this Rs 3,487 crore of debt has been used for creation of assets and the remaining Rs 24,712 crore has been used for operational financing and deficit financing on account of losses.