An Analytical Study on Budget Statement of Chhattisgarh State Power Distribution Company Limited

Aradhana Shukla¹, Ashok Sharma², Nidhi Shri Shukla³

¹Assistant Professor, Vipra Arts Commerce and Physical Education College, Raipur (C.G.)

²J.Y. Govt. Chhattisgarh College, Raipur (C.G.)

³Assistant Professor, Vipra Arts Commerce and Physical Education College, Raipur (C.G.)

*Corresponding Author E-mail:

ABSTRACT:

A Study of Role and Performance of Chhattisgarh State Distribution Company Limited” which basically relates to the Commercial, Financial Functioning and administrative structure with consumer and employees satisfaction of CSPDCL. Distribution company of the Chhattisgarh state is the largest revenue generating unit among all five companies of power sector in state. It directly deals with the consumers and analyses the demand and supply rate which ultimately complement the generating units for demand mitigation purpose. CSPDCL generates revenue as it directly squares up the charges of unit consumption as billing system and gets paid by consumer of all sectors at its single window collection corner. So, CSPDCL not only go through the billing and distribution services but undertakes the other area of services which are such as --Adopting best practices, Implementing modern technology in the business, Reducing distribution losses, Providing reliability and quality power to the consumer’s at affordable rates, Facilitating with power supply to the consumer 24 hours * 365 days, Providing consumer satisfaction through service excellence, Implementing policies supporting faster economic growth of CG state.

KEYWORDS: CSPDCL, Production, Tarif.

INTRODUCTION:

Socio-economic growth of the largest democracy in the world seems to be directly proportional to its installation, demand and consumption of electricity. As on 2020-2021 CEA reports installed generating capacity of india from Fossil including coal is 234694 MW, and from Non-fossil including hydro and nuclear is 157324 MW thereby grossing up to total capacity as 392017 MW and India’s power consumption up to 18.6% to 129.51 billion units. As the national electrification is sum up of all states percentage of electricity facility available and consumed there in various sectors. So, the Chhattisgarh state established in 1 November 2000 being the 9^th largest and 16^th established state of India. Chhattisgarh’s parental state was Madhya Pradesh which was established in 1 November 1956 and at current the state has power company named as Madhya Pradesh power company limited which works on PPP model and having installed capacity of 6315 MW and consumption statistics shows up to 56972 GWh in its 2019 reports. In the Chhattisgarh electricity power board was the pronounced as generation, distribution and transmission of electricity thereby classified as Chhattisgarh state electricity board was formed in accordance with section 5 of the electricity supply Act 1948 as per the notification published in the gazette of the Government of Chhattisgarh dated 15 November 2000 and became operative as on 01 December 2000. CSEB was solely functioning in terms of generation, Transmission and Distribution of Electricity in Chhattisgarh state. With emergence of raised power requirement in adherence to provision contained in the section 131 to section 133 of Electricity Act 2003, with wide notification dated-19/12/2008 Government of Chhattisgarh has re-organized the CSEB in to five companies individually responsible for Generation, Distribution, Transmission, Holding and Trading function respectively.

OBJECTIVES:

The outlined objectives of the study are as follows:-

1. To study the financial position of the CSPDCL.

2. To pin down problems, difficulties and deficiencies in its working and operations.

3. To study the consumer’s satisfaction level with diversified functioning system of distribution at domestic, industrial and agricultural electrification services.

4. To study the contribution of Chhattisgarh State Power Distribution Company Limited in economic development of Chhattisgarh.

5. To asses the employee’s gratification during its functionality and management compass.

REVIEW OF LITERATURE:

A review of literature is description of references and analysis of the literature relevant to a particular field or the research topics chosen. It basically provides an overview of what world already had been carried out, who are the key persons undertaken that work.

1) “The Finances of the Andhra Pradesh State Electricity Board” (1980) by Dr. V. Nagaraja Naidu.

“Pricing in Public utilities - A study of Electricity undertaking in Punjab and Haryana,” (1984) by Dr. Surender Kumar.

2) “Performance of Indian power sector: A methodological review of literature post-electricity”(2018) by L. Kishore and Lakshmi Bhat.

3) Dr. V.P. Gupta (1992) -“Impact of Rural Electrification" has made an attempt to analyses the impact of rural electrification on the cropping pattern and income of cultivating households. In 1983, the Government of India set-up the Advisory Board on Energy (ABE) with the objective of formulating an integrated energy policy for India.

RESEARCH METHODOLOGY:

This research paper is an explanatory in pattern which is primarily based on secondary sources such Annual Reports of CSPDCL referred journals article, books and websites and research papers for its data consideration.

Study Of CSPDCL: (Budgetary Statement)

At first instance we have to take up the Financial Statement view to understand the Financial appraisal of CSPDCL, for which we are considering the three pillars of profit and loss statement- Revenue, Expenses and Net income including profit or loss for the year to get portrait of the impact of CSPDCL on Chhattisgarh’s Economy. The data collected and present are here under:

Year	Total Revenue	Increase/ Decrease in Revenue	Total Expenses	Increase/ Decrease in Expenses	Net Comprehensive Income (Profit/Loss)	Changes
2016-2017	1283576.11	-	1325751.90	-	(4217579.26)
2017-2018	1480679.84	197103.73	1498933.74	173181.84	(12743.46)	(4204835.8)
2018-2019	1621463.62	140783.78	1629067.61	130133.87	(13973.54)	(1230.08)
2019-2020	1568108.25	(53355.37)	1682766.81	53699.21	(159250.49)	(145276.95)
2020-2021	1627433.86	59325.61	1715432.90	32666.1	(88844.98)	(70405.51)
CHANGES

GRAPH-I: TOTAL REVENUE AND ITS CHANGES

GRAPH-II: TOTAL EXPENSES AND ITS CHANGES

GRAPH-III: PROFIT/LOSS AND ITS CHANGES

ANALYSIS:

The Budgetary statements reveals the exact position of the CSPDCL through its Revenue, Expenses and the Profit/Loss for the Five consecutive financial years respectively. Total revenue shown up the increase in each successive yearfrom2016 to 2019 but dropped down in the year 2019-2020 which again speed up with increase in the year of 2020-2021. So, the Revenue pattern lights up the positive impact of CSPDCL position.

Total Expenses of the CSPDCL focused on internal and external expenses with increase in each successive year from2016 to2021 thereby effecting the revenue position of the CSPDCL with negatively ragging of funds diverted towards different expenses pattern as well.

Comprehensive Profit/Loss pin downed the negative balance denoted as loss position of CSPDCL but rounding off with decrease in loss in every successive year which ultimately stands up the vital position of CSPDCL inconsecutive past five years with dominant status evolved thereof.

CONCLUSION:

CSPDCL involves the Revenue from inter state as well as intra state distribution of electricity bifurcated in domestic, industrial as well as agricultural which leads the increase in revenue with increase in demand each year thereby balancing the supply chain systematically. Expenses are also clarifying the increase in successive year which are operational and external miscellaneous expenses which may be non-operative in nature. Total expense are increasing due to improvisation of distribution span of CSPDCL which are basically the part of the external miscellaneous expenditure which ultimately impact the comprehensive profit/loss of CSPDCL turning it into loss position even though the CSPDCL is having positive rate of revenue in successive year except the year 2019-2020. Although comprehensive loss is also tending up to decrease with each year of CSPDCL operational position hereby remaining it at vital financial position for successive survival thereof.

REFERENCE:

1. Annual Report of CSPDCL 2016 to 2021 including financial statement from https://www.cspdcl.co.in/cseb/(S(cj3ryq1oyq4yqkl3ngjaek0z))/frmFnA.aspx

2. A. S. Pabla 2019 hand book of Electric Power Distribution

3. Ankit Agrawal; Y B K Reddy; S.K. Pradhan; B.K. Rout:-“Renewable energy integration and Deployment strategies: A case study for Chhattisgarh”., Research scholar, BITS Pilani, AGM, Solar energy corporation of India Ltd., A.P. BITS PILANI respectively.

4. Ajai Nirula, October 2019; Article; “India’s power distribution sector: An assessment of financial and operational sustainability”.

5. NITI AYOG; RMI, Energy Transform; August 2021; “Turning around the power distribution sector learning and best practices from reforms”. https://www.niti.gov.in

6. Kesia Braga, Carlos Rufin, Roberto Brandao, Ernani Torres; Gesel, Federal University of Rio De Janerio Brazil.; 1st Energy Economics Iberian Confrence EEIC/CIEE 2016, Feb, Libon, Portugal, APEEN and AEEE.

Received on 12.05.2022 Modified on 25.05.2022

Int. J. Ad. Social Sciences. 2022; 10(2):55-58.