NTPC Current Affairs - 2019
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The Indian Public Sector Undertaking’s (PSUs) National Thermal Power Corporation Limited (NTPC Ltd) and Power Grid Corporation of India Limited (PGCIL) have signed an agreement to set up National Electricity Distribution Company Limited (NEDCL).
The forming of a joint venture to set up National Electricity Distribution Company by NTPC, a leading power generator, and Power Grid, which owns India’s largest power transmission network, paves way for two to get into consumer electricity supply business. As per the agreement NEDCL will be a joint venture of NTPC and PGCIL on 50:50 equity basis.
Objective: To undertake business for distribution of electricity in distribution circles in various states and Union Territories (UTs) and other related activities.
Significance: As the announcement about Joint venture comes at a time when existing reform scheme UDAY (Ujwal DISCOM Assurance Yojana) has been declared as a failure by several agencies, thus this move could also hint at another round of power distribution reforms.
Reform Includes: Separation of content and carriage businesses in power distribution which means that the infrastructure builder for power supply and supplier to consumers would be two separate companies. This would make power distribution sector more competitive as separating content and carriage will bring more competition with more than one power supplier.
These measures have been suggested in latest amendments to Electricity Act, 2003, which is yet to be tabled in Parliament.
Ujwal DISCOM Assurance Yojana was launched by government of India in 2015 with aim of turning around the state-owned discoms financially and operationally as well as finding a permanent solution to financial mess that power distribution is in. Although the financial part was concluded with states’ taking over losses of distribution companies and issuing bonds but operational front is still facing challenges.
Current Status: At the end of Financial Year 2019, Losses of state-owned discoms grew by more than 40% (Rs.21,658 crore) but at the same time, the dues of discoms to power Generation company (gencos) stood at Rs.38,023 crore.
The Public Enterprises Survey 2017-18 was tabled in the Parliament. The Survey mapped the performance of the various central public sector units. The survey was undertaken by the Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises.
Findings of the Survey
The major highlights of the performance of CPSEs are:
- Indian Oil Corporation, ONGC and NTPC were the top three most profitable PSUs in 2017-18. They contributed 13.37 per cent, 12.49 per cent and 6.48 per cent, respectively to the total profit earned by CPSEs (Central Public Sector Enterprises) during 2017-18.
- The fourth and fifth positions were occupied by Coal India and Power Grid Corporation in the list of top 10 profit making CPSEs in the 2017-18 fiscal.
- The Power Finance Corporation entered into the list of the top ten profit making CPSEs and the Mangalore Refinery & Petrochemicals Ltd did not feature in the latest list.
- The top ten profit making CPSEs accounted for 61.83 per cent of the total profit earned by all the 184 profit making state-owned firms during the year 2017-18.
- BSNL, Air India and MTNL incurred the highest losses for the second consecutive year. They contributed 52.15 per cent of the total loss incurred by CPSEs in 2017-18.
- The top ten loss-making PSUs claimed 84.71 per cent of the total losses made by all the 71 CPSEs.
- Bharat Coking Coal Limited which incurred huge losses in 2017-18 entered into the list of top ten loss making CPSEs.
- India Infrastructure Finance Co and Eastern Coalfields, which were profit-making PSUs till 2016-17, have started incurring losses and have featured in the list of top ten loss-making state-owned firms during 2017-18.
The survey notes that there were 339 Central Public Sector Enterprises (CPSE) in 2017-18, out of which 257 was in operation. Remaining 82 of the CPSEs were under construction.
Tags: Air India • Bharat Coking Coal Limited • BSNL • Coal India • Eastern Coalfields • India Infrastructure Finance Co • Indian Oil Corporation • Mangalore Refinery & Petrochemicals Ltd • MTNL • NTPC • ONGC • Power Finance Corporation • Power Grid Corporation • Public Enterprises Survey 2017-18