Financial Daily from THE HINDU group of publications
Saturday, Dec 10, 2005
Financial Daily from THE HINDU group of publications Saturday, Dec 10, 2005 |
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Corporate
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Performance Gujarat power utility makes Rs 260-cr cash profit in H1 Our Bureau
Ahmedabad , Dec. 9 CLAIMING that the unbundling of the Gujarat Electricity Board (GEB) has been a success, the State Energy Minister said on Friday that the utility has made a cash profit of Rs 260 crore in the first half of the current financial year. "At a time when most Government electricity utilities are making losses, we have managed to earn a cash profit of Rs 260 crore in the first half. After accounting for depreciation of Rs 800 crore, we should cut our net losses drastically," the Gujarat Energy and Finance Minister, Mr Saurabh Dalal, said. The Gujarat Urja Vikas Nigam Ltd hopes to end the year with a net loss of about Rs 200 crore. GEB, which was the lone energy generation and distribution entity of Gujarat, had annual losses in excess of 2,500 crore a couple of years ago, Mr Dalal said. The GEB has been unbundled and broken into seven companies - one each for generation, transmission and power trading; and four for distribution. Gujarat also claims to be the first State to implement open access system, under which users would have the freedom to choose their power company. "We have decided to go ahead and implement open access from January 1 for customers taking over 5 MW power. We are confident that it would bring in greater competition and the users will benefit," Mr Dalal said. The State has also announced more liberal captive power plants policy, under which it would buy surplus electricity at a 30 per cent premium if the fuel used was either lignite or gas. Mr Dalal said that several large industrial units have been encouraged to set up their own generation capacity in the State to take advantage of the policy.
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