The overall plan outlay (expenditure) of PSUs in the Union power ministry has been pegged at Rs.51,470.14 crore in FY23 (BE), up 5 per cent from Rs.49,006.30 crore in FY22 (RE). In FY21, the actual plan outlay of power PSUs stood at Rs.47,330.33 crore.
It is interesting to note that the entire outlay for FY23 is going to be met by internal & extra budgetary resources (IEBR). This means that there is no budgetary allocation towards the outlay of power PSUs. This amount will be met through internal accruals of the respective companies as well as other sources like domestic/ overseas borrowings. (Note: RE = Revised Estimate, BE = Budget Estimate)
Of the total outlay for FY23, NTPC alone accounts for nearly 44 per cent. This Central PSU has planned an outlay of Rs.22,454 crore in FY23, in fact lower by 5.4 per cent than the Rs.23,736 crore in FY22 (RE).
As can be seen in the table presented, SJVN Ltd (formerly Satluj Jal Vidyut Nigam Ltd) has planned an outlay of Rs.8,000 crore in FY23, which is 60 per cent higher than the Rs.5,000 crore in FY23 (RE). In FY21, SJVN had incurred capital expenditure of Rs.2,500 crore.
In the power T&D space, Power Grid Corporation of India Ltd (PGCIL) has maintained its outlay at Rs.7,500 crore in FY23 – unchanged from FY22 (RE) but substantially lower than the Rs.10,500 crore in FY21.
NEEPCO Ltd and THDC Ltd, both part of NTPC Group, are expecting significant jump in their planned outlays for FY23.
Power Systems
For strengthening of power systems, the Budget has made an allocation of Rs.2,975.73 crore for FY23, which is 10.4 per cent lower than the corresponding Rs.3,321.57 crore in FY22 (RE). The head “Strengthening of power systems” covers areas like smart grids, green energy corridors, interest subsidy to National Electricity Fund (NEF) and system strengthening schemes in northeast India. It must be remembered that expenses under this head are mostly of the “revenue” type, which is to say administrative expenditure and not “capital” expenditure.
RLDS
Under the Reforms Linked Distribution Scheme (RLDS) that was launched in July 2021, the outlay for FY23 has been pegged at Rs.7565.59 crore. In FY22, the expenditure on RLDS was Rs.1,000 crore. It must be remembered that RLDS was not in operation for the whole of FY22. It should also be noted that all projects under former schemes like Deen Dayal Upadhyaya Gram Jyoti Yojna (DDUGJY) and Integrated Power Development Schemes (IPDS) have been subsumed under RLDS. As such, the outlay under DDUGJY and IPDS for FY23 is nil.
