CAG Discom Audit: 39 Power Distribution Companies Under Review
State power companies owe over Rs 7.26 trillion; auditors will now check losses, billing and meters, and ask 10,000 consumers how they are served.
Image: Wikimedia Commons (Kolkata electricity meters)
The Comptroller and Auditor General of India has started its first integrated audit of the operational and financial performance of 39 state-owned power distribution companies, or discoms, and five state power departments, Business Standard reported on 12 November. A senior CAG official said 28 officers are working on the audit, which covers data for the last five years and includes a survey of about 10,000 consumers on the quality of service they get.
A Survey of 10,000 Consumers
This is the first time a CAG audit of discoms asks consumers directly. Auditors will check aggregate technical and commercial (AT&C) losses, billing efficiency, collection, supply performance and short-term power purchases, including those through power exchanges. The audit is also linked to the Centre’s Revamped Distribution Sector Scheme. For households, the findings could show where meters, billing and supply failures are concentrated in each state.
Rs 3.41 Trillion in Accumulated Losses
The report cites figures for 2024-25. Forty-one discoms earned combined profits of Rs 32,661 crore, while 23 made combined losses of Rs 29,959 crore. By the end of March 2025, accumulated losses stood above Rs 3.41 trillion, borrowings above Rs 7.26 trillion and annual interest at Rs 77,653 crore. The official said government revenue grants have grown more than four times faster than capital grants, meaning support is going more to covering losses, debt and interest than to new investment.
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Earlier this year the Ministry of Power’s Annual Integrated Rating covered 65 of 73 utilities. IPB News has also reported on the Haryana power strike and the privatisation row and on Tamil Nadu’s power purchase dispute. More reports sit under the Ministry of Power tag.
State Reports Due Next Year
State-wise findings are expected next year and will go to state legislatures as State Audit Reports; policy issues common to several states will go to the Ministry of Power. The CAG plans to audit the wider power sector over the next four years, moving on from discoms to transmission, generation and renewable energy. The Indian Institute of Management Ahmedabad is helping with the audit design.
Source: Based on reporting by Business Standard and ThePrint Hindi.
Image: Wikimedia Commons.
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