Ahmedabad: The list of state government -owned power companies is expected to show interest by at least six companies, including production, transmission and distribution companies (Jenco, Transco and Discom). Government sources said that talks have gone ahead with Gujarat, Chhattisgarh, Haryana, Andhra Pradesh to list one or more companies.
According to sources familiar with the case, the Gujarat Energy Transmission Company is at the forefront of the matter and is preparing the draft for the initial public offering (IPO). Chhattisgarh has proposed to list two companies – Chhattisgarh State Electricity Generation Company Limited and Chhattisgarh State Electricity Transmission Company Limited – in a meeting with the Union Electricity Ministry. It is also proposed to list the Haryana Power Generation Company Limited.
The Union Energy Minister has announced that the states should focus on making a list of power companies earning profit so that they can generate more revenue.
States in which Zenco or Transco or Electrical Distribution Companies (DISCOM) are performing well should consider listing on the exchange.
According to a specialist in the power sector, it is very difficult to list the discoms, as most of them are running in losses. Solutions for discom can be different models of privatization or public private participation.
Discom currently has a total debt of Rs 6.84 lakh crore and their total deficit is Rs 6.46 lakh crore. In the financial year 2023-24, they spend 21 paise more than their income on 1 kW electricity. The Center is trying to bring it to zero.
Market flight, slow shares
