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Present Haryana Government inherited accumulated debt of about Rs 38,345 crore in power sector in 2013-14

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Chandigarh, March 7, 2015: The present State Government has inherited an accumulated debt of about Rs 38,345 crore in power sector in the year 2013-14.

Unfolding the broad contents of second part of White Paper at a press conference here today, the Finance Minister, Capt Abhimanyu, said that the Power Sector in Haryana comprises four Companies, namely Haryana Power Generation Corporation Limited (HPGCL), Haryana Vidyut Prasaran Nigam Limited (HVPNL), Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL) and Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL) created in 1998 as part of power sector reforms.

He said that the Haryana Power Generation Corporation Limited (HPGCL) had a cumulative loss of Rs. 87crore in 2004-05. This loss increased 500 percent to Rs. 438 crore in 2013-14.  Since 2004-05, the company has remained in profit for 4 years and in losses for 6 years The Company had a total debt of Rs. 2,467 crore as on March 31, 2004, which has increased over 200 percent to Rs. 5,748 crore as on March 31, 2014.

He said that similarly, the debt of the Haryana Vidyut Parsaran Nigam Limited (HVPNL) Company was Rs. 2,493 crore as on March 31, 2004 and this has increased to Rs. 4,398 crore as on March 31, 2014. The two companies together have an accumulated debt of Rs. 10,146 crore in 2013-14.

Capt Abhimanyu said that Uttar Haryana Bijli Vitran Nigam (UHBVNL) and Dakshin Haryana Bijli Vitran Nigam (DHBVNL) remained in losses in all ten years since 2004-05. The cumulative losses of both the companies together increased by 2600 percent from Rs. 1,030 crore in 2004-05 to Rs.26,912 crore in 2013-14.The accumulated debt of both companies together increased 1900 percent from Rs. 1,458 crore as on March 31, 2004 to Rs. 28,199 crore as on March 31, 2014 . Out of this Rs.3,487crore of debt has been used for creation of assets and the remaining Rs. 24,712crore has been used for operational financing and deficit financing on account of losses. Due to cash deficits on account of these losses, the DISCOMs have been facing severe liquidity stress. / (SK Vyas, Jalandhar)

Date: 
Saturday, March 7, 2015

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