Earned no profits last year: discoms

The discoms disagree.

In an official statement released on Wednesday,the BYPL has argued “in the last seven years of existence,the BYPL has sustained its operations only on borrowings from various commercial banks and today has over Rs 1,525 crore of outstanding debts. A majority of this was used for sustaining regular operations. This precarious financial situation has arisen because of artificial assumption of surplus revenue by regulators based on unrealistic lower power purchase estimates.”

Similarly,discom NDPL said: “It is not correct that the NDPL is showing a net profit of Rs 700 crore. The figure of Rs 716 crore is the difference between accrued net sales and power purchase costs.”

The accrued net sales include Rs 671 crore,which is yet to be recovered through future tariffs to be fixed by DERC.”

The NDPL,in its statement,has said it has suffered a shortfall of Rs 680 crore in 2009-10.

The DERC,meanwhile,is in the process of formulating a response to the government’s notice.

Sources revealed that the commission can legally bypass the government’s notice,provided its chairman and two members agree to do so. The two members have,however,expressed concern and are unlikely to allow the tariff order to be issued against the government’s directive.