Adani Electricity Mumbai Ltd Tops Power Utility List In India, See Full List
With a score of 99.6 out of 100, Adani Electricity Mumbai Limited also becomes the only private company to be in the top 5.
Adani Electricity Mumbai Limited: The Number 1 Power Distribution Utility In India
The Ministry of Power released the 11th edition of its Annual Integrated Rating and Ranking of Power Distribution Utilities on Monday, April 10. Adani Electricity Mumbai Ltd, also known as Adani Electricity, or AEML, was ranked number 1 on this list.
The Annual Integrated Rating Exercise is a yearly exercise conducted with Power Finance Corporation Limited as the nodal agency. It comprises a list of 71 power distribution utilities, including 45 state discoms, 14 private discoms, and 12 power departments across India.
This list rates discoms based on their overall governance, which includes financial sustainability, performance excellence, and external environment. Adani Electricity topped this list by achieving an overall score of 99.6 out of 100 along with an A+ grade.
The Annual Integrated Rating and Ranking report is prepared by McKinsey & Company after assessing each of the 71 utilities based on the statements of the past three financial years, starting from 2019-2020 and going up to 2022-2023.
AEML not only secured the first position on this list but also became the only private company to be featured in the top 5. It is also one of the 15 discoms that didn’t get any negative markings in the evaluation.
Adani Electricity’s Scores On Various Parameters
AEML’s overall score has shown improvement since its inclusion in the 10th edition of this annual report. In the 10th edition, the company scored 93.4, while in the latest edition, it scored a total of 99.6 out of 100.
This score was given based on the company’s individual scores on various parameters. Here’s a detailed look at AEML’s scores in these categories:
Financial Sustainability: Adani Electricity got a perfect score of 75 on this aspect. This score was given for its ACS-ARR Gap (cash-adjusted), Days Receivable, Days Payable to GenCos and TransCos, Adjusted Quick Ratio, Debt Service Coverage Ratio (cash-adjusted), and Leverage Debt/EBITDA (cash-adjusted).
Performance Excellence: AEML got a score of 12.8 out of 13 for Performance Excellence. This covered Billing Efficiency, Low Distribution Loss, Collection Efficiency, and Corporate Governance. The company got perfect scores in all these aspects except for Corporate Governance, where it lost 0.2 points.
External Environment: Adani Electricity earned 11.9 out of 12 for External Environment covering Subsidy Realised (last three fiscals), Loss Takeover by State Government, Government Dues (last three fiscals), Tariff Cycle Timelines, and Auto Pass-Through of Fuel Costs. The company lost 0.1 point here in the ‘Government Dues’ category.
MD Kandarp Patel On Adani Electricity Ranking No. 1
In a statement released by Adani Enterprises Ltd, Kandarp Patel, MD, Adani Electricity Mumbai Ltd., said, "Over the last five years, our customer-centric focus has enabled us to reduce and stabilise tariffs, optimise power purchase costs, and improve operational efficiencies through state-of-the-art technology interventions such as SCADA, automated workflow management, and a digital-first approach."
"These efforts have made us not only Mumbai's but one of India's most competitive electricity providers, as recognized by the Power Finance Corporation and the Ministry of Power. This independent recognition is a testament to our commitment to serve our customers with reliable, affordable, and sustainable electricity,” he added.
Patel also said, “We will continue to enhance our services and infrastructure to exceed global benchmarks. We also recommit ourselves to doubling our share of renewable energy share to 60%. This is our commitment to Mumbai and to all our stakeholders who have stood by us through this journey to Number One."
Top 10 Power Utilities In India
Although Adani Electricity has bagged the first position on this list, it is closely followed by two state utilities namely Uttar Gujarat Vij Company Limited (UGVCL) and Madhya Gujarat Vij Company Limited (MGVCL).
AEML is the only private utility in the top 5 power utilities in India. However, in the top 10, there are two more private utilities - Noida Power Company Limited (NPCL) and Tata Power Limited - Mumbai. These two utilities have secured the 7th and 8th positions respectively.
Here is the list of the top 10 power utilities in India:
