If you are planning to earn by investing in IPO, then this news may be important for you. The central government is preparing to list 5 companies in the power sector in the stock market. Among them are Andhra Pradesh Power Generation Corporation and Gujarat Energy Transmission Corporation, who are currently in the process of appointment of merchant bankers.
Consideration of privatization of discom companies
The central government is also exploring the possibility of privatization of power distributor companies (discoms). According to the report, the discom companies are facing challenges of rising power procurement costs, transmission deficit and delay in payment. The government has constituted a ministerial committee to deal with these financial problems.
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Discom companies deficit
- The total deficit of discom companies by 2023-24 was 6.92 trillion rupees.
- By the end of the financial year 2024, his outstanding debt reached Rs 7.53 trillion rupees.
- The difference between AC S-ARR-Average Revenue Realised was 45 paise per KWH in 2022-23, which decreased to 19 paise in 2023-24.
- By January 2025, this difference was reduced to 10 paise per kwh.
Opinion of experts
- Phased tariff adjustment
- Technical and commercial deficit decrease
- Power procurement cost optimization
These measures can improve the financial health of discom companies and create better possibilities for investors in their IPOs.
If you are willing to invest in the stock market, then keep an eye on the IPO of these companies!
