KOLKATA: There has been a sharp improvement in the adjusted book losses of State power sector utilities according to a performance rating of the state power sector. The report was prepared by Crisil and ICRA and was mandated by the Power Finance Corporation at the instance of the Union Power Ministry.

The States topping the list were Andhra Pradesh, Gujarat, Delhi and Karnataka. West Bengal, Maharashtra and Kerala were some of the States which recorded better performances.

With reduced losses and improved cash realisation, the consumer has benefited. According to the report, in the first three quarters of 2005-06, Gujarat Electricity Board (GEB) improved its per unit realisation to Rs. 2.98 from Rs. 2.84 in the same period in 2004-05 with its cost of service dipping from Rs. 4.15 per unit to Rs. 3.53. The GEB almost halved its losses from Rs. 1,932 crore in 2003-04 to Rs. 1,035 crore in 2004-05.

The report, finalised in June, is the third in the series, with the first being submitted in January 2004. The parameters checked included progress in attaining commercial viability, sustainability of revenue models, creation of a competitive environment, a financial risk analysis and the State government's progress in implementing the key provisions of the Electricity Act, 2003.

Describing adjusted loss as a parameter which measures profitability after computing the build-up of receivables and expenses and adjusting for subsidy support, the report said that cash collection by the State power utilities improved during 2004-05.

States showing significant change in ratings were Gujarat, Delhi and Maharashtra, while Uttaranchal, Assam, and Tripura were among those which improved their rankings. Among the major States which have slipped in their position were Tamil Nadu, Chhattisgarh, Uttar Pradesh and Haryana.

Bihar, Manipur and Jammu and Kashmir were the three States which ended up with negative markings. The report had a special mention for Andhra Pradesh, West Bengal, Kerala and Orissa saying that these were the only four of the 29 States to issue tariff order for 2005-06 by March 2005.

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