Due to the COVID-19 pandemic, power company Grid Corporation of Odisha Limited (GridCo) has been hit by a huge revenue deficit. Considering the current situation, the state government has assured to help out GridCo in its ongoing financial crisis.
As per sources, the power requirement in Odisha decreased by 14 percent during March-June, compared to last year. However, GridCo is still paying the fixed charges to power generating plants as per the power purchase agreement. This is increasing the company’s cost of input. The company is experiencing an enormous loss due to the low demand for bulk power from the power distribution companies (discoms), and as a result, yielding lesser revenue.
Chief Secretary Asit Tripathy chaired a meeting where the administrators advised the following points:
- The government will extend the required financial guarantee support to GridCo, as power is a critical need.
- The State-owned power trading utility has calculated a revenue deficit of around Rs 3,123.66 crore. The state government will assist in recovering this amount.
- OPTCL, GridCo and distribution companies to make the power sector self-sustaining via an aggressive systematic reform and moderation in aggregate technical and commercial (AT&C) losses. A percentage decrease in AT&C losses has led to around Rs 130 crore revenue gains.
- The chief secretary has urged optimising the existing channels while developing the metering, billing and collection efficiency. Discoms have been directed to achieve a minimum of 98 percent billing and collection capacity this year.
- OPTCL and GridCo have been directed to reduce operational costs through the adoption of innovative tech-based approaches.
- GridCo to redesign its investment in the renewable power sector keeping in view the availability of low-cost renewable energy from the interstate market.
Notably, the adverse impact of COVID-19 on the power sector, its future implications and solutions were discussed in the meeting.