THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF POWER
( SHRI JYOTIRADITYA M. SCINDIA )
(a) & (b): DVC has made a loss during the financial year 2010-11 and 2011-
12.
The profit/loss of Damodar Valley Corporation since 2009 is furnished below:
Particulars 2009-10 2010-11 2011-12
Profit/loss (after tax) in Rupees crore 300 (-120) (-858)
# The loss shown for the year 2011-12 is under audit.
The reasons for the financial losses are as follows:
I.(i) Reduction in Tariff by Central Electricity Regulatory Commission
(CERC) from May, 2010 during 2010-11 by 29 paise per KWH from Rupees 3.69 per KWH
to Rupees 3.40 per KWH, which led to reduction in profitability.
(ii) Interest on Government Capital not considered by CERC in Tariff amounting to Rupees
277 Crore and Rupees 293 Crore during 2010-11 and 2011-12 respectively. DVC has filed an
appeal before the Hon`ble Supreme Court of India on the above issues and the same is
pending.
II. Contribution of annual instalments towards balance Pension & Gratuity liabilities of
DVC to the Trust pertaining to past years based on valuation made by the actuarist amounting
to Rupees 218 Crore during 2010-11 & Rupees 733 Crore during 2011-12.
III. Jharkhand State Electricity Board (JSEB) dues due to non-payment of Rupees 5414 Crore
outstanding from JSEB on account of power bills till 31st October, 2012 with interest incidence
of about Rupees 250 Crore and Rupees 300 Crore during 2010-11 & 2011-12 respectively on Bank
loans taken from them.
IV. Non-recovery of fixed expenditure of about Rupees 65 Crore and Rupees 160 Crore during
2010-11 and 2011-12 respectively due to less than expected performance of new units.
(c) : Measures taken by the Government for improvement of financial position and profitability
of DVC:
I. Ministry of Power has approached the Ministry of Finance for recovery of an amount of
Rupees 2353 Crore of JSEB as reconciled till March, 2012 by devolution of the Central Plan share
of Jharkhand State in terms of the Tripartite Agreement (TPA) of the securitization scheme 2002
of Government of India.
II. Government of India has issued guarantee for Rupees 4400 Crore in year 2011-12 for the
issuance of Bonds on the request of DVC and DVC has already raised this amount. Ministry of
Finance has agreed to provide guarantee for Rupees 2600 Crore for the year 2012-13
