Srinagar, Aug 02: Jammu and Kashmir’s power distribution utilities have registered a significant reduction in Aggregate Technical & Commercial (AT&C) losses over the past few financial years under the Centre’s Revamped Distribution Sector Scheme (RDSS).
However, despite the reduction, both the utilities, including Jammu Power Distribution Corporation Limited (JPDCL) and Kashmir Power Distribution Corporation Limited (KPDCL), remained short of their Financial Year-25 loss reduction targets.
As per the data released by the Government of India, JPDCL reduced its AT&C losses from 37.64% in FY23 to 32.47% in FY24 and further to 27.45% in FY25. However, the target of 27% for FY26 has been set under the scheme.
Similarly, KPDCL brought down its AT&C losses from 59.59% in FY23 to 51.98% in FY24 and 33.54% in FY25. Despite the sharp improvement, the utility remained below the desired performance level against the FY25 target of 44%, while the FY26 target has been fixed at 34%.
As per the details, Minister of State, Power Shripad Naik has said that the transmission losses in the country are around 3-4% on an annual basis. “Distribution losses in the distribution network, along with the losses on account of shortfall in collection of revenue, are together reported as Aggregate Technical & Commercial (AT&C) losses of the distribution utilities.”
Naik has recently informed Lok Sabha that Government of India (GoI) launched the Revamped Distribution Sector Scheme (RDSS) in July 2021 with the objective of improving the quality of power through a financially sustainable and operationally efficient distribution sector.
The scheme has an outlay of Rs 3,03,758 crore and estimated Gross Budgetary Support (GBS) from the Central Government of Rs 97,631 crore.
Under the scheme, he stated, financial assistance is being provided to the distribution utilities for loss reduction infrastructure and smart metering works.
“Projects worth Rs 1.53 lakh crore for loss reduction infrastructure and Rs 1.31 lakh crore for smart metering works have been sanctioned under the scheme. Release of funds under the scheme is linked with performance of the distribution utilities against operational and financial parameters including the AT&C losses.
With concerted efforts of the Central and State Governments and as a result of various reform measures undertaken, there has been a reduction in overall transmission and distribution losses. AT&C losses across the country have reduced from 21.91% in FY21 to 15.04% in FY25. These collective efforts have also resulted in distribution utilities, on an aggregate basis, achieving a profit after tax (PAT) of Rs 2,701 crore in FY25 for the first time since the coming into force of the Electricity Act, 2003.”
