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9th Annual Survey of Discoms: Five out of 41 secure “A+” rating, Gujarat tops

Torrent Power | T&D India

 

Five out of the 41 state government-owned power distribution companies have scored the best “A+” rating, as per the “9th Annual Integrated Rating of State Power Distribution Utilities”.

This report, coordinated by Power Finance Corporation (PFC) with the participation of state power discoms, was released by the Union Power Minister, R.K. Singh, on July 16, 2021. The discoms were rated on the basis of their performance in FY20 (April 1, 2019 to March 31, 2020).

Here are some key findings of the report:

 

 

 

 

 

 

 

 

 

Rating Methodology

Broadly, operational and reform parameters had 43 per cent weight in the overall score of discoms. External parameters (including government support) accounted for 15 per cent. Financial parameters constituted the remaining 42 per cent of the overall weight.

Also read:  PFC Registers Strong Performance In FY20

Background

Ministry of Power had formulated an Integrated Rating Methodology in July 2012 for evaluating performance of state power discoms on a range of parameters covering operational, financial, regulatory and reform parameters. The rating exercise is carried out on annual basis and presently covers 41 state distribution utilities spread across 22 states. State power/energy departments and private discoms are however not covered under the integrated rating exercise.

ICRA and CARE are the designated credit rating agencies and have been assigned 21 and 20 utilities respectively. MoP has mandated Power Finance Corporation (PFC) to co-ordinate the rating exercise.

So far, nine integrated rating exercises covering FY12, FY3, FY4, FY15, FY6, FY17, FY8, FY19 and FY20 — the latest being the subject of this story — have been completed. The immediately preceding 8th integrated ratings were released on December 9, 2020.

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