Bleeding 71K cr, MP discoms rank fourth worse nationally

Bhopal: Madhya Pradesh's power distribution sector has emerged as one of the country's biggest financial sinkholes, with the state's three electricity discoms together posting accumulated losses of Rs 71,395 crore. This places MP among the worst-performing states nationally after Tamil Nadu, Rajasthan and Uttar Pradesh, according to the 14th Annual Integrated Rating and Ranking of Power Distribution Utilities released by the Union ministry of power.A striking feature of MP's power finances is the concentration of losses in a single utility. MP Madhya Kshetra Vidyut Vitran Company Ltd (MPMKVVCL) alone has accumulated losses of Rs 30,900 crore, higher than the entire accumulated losses of several Indian states. The central discom, which serves Bhopal and adjoining regions, is ranked 46th among 54 discoms in the country, reflecting deep financial stress.
The other two MP utilities are also heavily burdened. MP Poorv Kshetra Vidyut Vitran Company Ltd (MPPKVVCL) has accumulated losses of Rs 27,992 crore, while MP Paschim Kshetra Vidyut Vitran Company Ltd (MPPaKVVCL) has losses of Rs 12,503 crore. Barring the west discom, both MP utilities figure in the bottom quartile of national rankings.At the national level, power distribution companies across India together have accumulated losses of Rs 6.47 lakh crore. Tamil Nadu tops the list, with its lone utility TNPDCL reporting accumulated losses of Rs 1,19,153 crore.Uttar Pradesh ranks second, posting accumulated losses of Rs 1,00,858 crore. Rajasthan follows, with Rs 92,463 crore in losses.Madhya Pradesh stands fourth nationally, while Telangana ranks fifth, with its power utilities together reporting accumulated losses of Rs 69,741 crore. This underscores the depth of financial stress across multiple regions despite years of reform-linked support and bailout packages.The report flags persistently high AT&C losses, wide ACS-ARR gaps, delayed tariff revisions and mounting govt dues as key reasons behind the deteriorating finances of discoms. With MP alone contributing over 11% of India's total accumulated discom losses, the findings underline how entrenched structural issues continue to undermine the sustainability of the power distribution sector.