Annual integrated rating and ranking: power distribution utilities

The Indian power sector has accomplished remarkable feats over the last few years, from nearly achieving universal electrification, creating a national grid, launching power exchange markets, to turning power surplus. The surging renewable energy capacity will play a critical role in achieving Net Zero by 2070 and help India emerge as a global clean energy hub. The power distribution sector is currently facing financial losses, climbing debt and dues to power generators. COVID-19 and resulting lockdown added to these woes: commercial and institutional power demand dropped as the world began working from home, long lockdowns limited industrial activity, lowering billing and collection efficiency, ultimately adding to financial losses and liquidity crunch. The annual integrated rating exercise, carried out under the approval and guidance of the Ministry of Power since 2012 plays an important role in addressing these challenges. It is a transparent, authentic source that allows all stakeholders in the power distribution sector to gauge their performance and take greater ownership of their operations. The ratings provide a blueprint for stakeholders to assess performance, identify gaps, measure impact of steps taken and plan ahead. This report publishes results and insights from the 11th edition of this annual exercise, conducted with the Power Finance Corporation Limited as the nodal agency. It covers 71 power distribution utilities comprising 45 state discoms, 14 private discoms and 12 power departments across India.