Ahmedabad: At least six companies, including generation, transmission and distribution companies (gencos, transcos and discoms), are expected to show interest in listing state government-owned power companies. Talks are advanced with Gujarat, Chhattisgarh, Haryana, Andhra Pradesh to list one or more of their companies, government sources said.

According to sources familiar with the matter, Gujarat Energy Transmission Company is the frontrunner and is preparing a draft for an initial public offering (IPO). Chhattisgarh has proposed to list two companies – Chhattisgarh State Power Generation Company Limited and Chhattisgarh State Power Transmission Company Limited – in a meeting with the Union Power Ministry. There is also a proposal to list Haryana Power Generation Company Limited.

The Union Power Minister has announced that states should focus on listing profit-making power companies so that they can generate more revenue.

 States where Gencos or Transcos or Power Distribution Companies (Discoms) are performing well should consider getting listed on the exchange.

According to a power sector expert, it is very difficult to list discoms as most of them are loss making. The solution for discoms could be privatisation or various models of public private partnership.  

Discoms currently have a total debt of Rs 6.84 lakh crore and their total loss is Rs 6.46 lakh crore. In the financial year 2023-24, they spend 21 paise more on 1 kilowatt of electricity than their income. The Center is trying to bring it down to zero.