Poor financial condition brings down MSEDCL’s rating
Nagpur: State power discom MSEDCL’s rating has slipped with the company getting B+ grade as compared to A last year. The major reason for the poor grade is precarious financial condition of the company, which is continuously getting worse. The gradation has been done by agencies appointed by Union ministry of power (MoP).
MoP had surveyed 40 state-run power distribution companies. They have been given six grades depending on their performance in 2014-15 A+, A, B+, B, C+ and C. Only three discoes have got the best rating A+. Six discoes have got A rating and 10 companies including MSEDCL have got B+. The remaining 21 discoes have got lower grades. The survey describes B+ grade as moderate operational and financial performance capability.
MSEDCL’s parameters have worsened after the survey was conducted and presently it may get even lower grade. The survey report cites the franchisee model as one of its key strengths. It says that MSEDCL was one of the first utility in the country to successfully demonstrate distribution franchisee scheme, which is being implemented in Bhiwandi, Jalgaon, Aurangabad and Nagpur. The contract of franchisees in Jalgaon and Aurangabad has already been terminated due to non-payment of dues and the one in Nagpur is frequently in trouble.