Turnaround for HPSEBL: From Rs 3,742 Cr losses to Rs 315 Cr profit in FY 2024–25
Shimla, Aug 1,
Despite being burdened with accumulated book value losses of Rs 3,742 crore as on March 31, 2024, the Himachal Pradesh State Electricity Board Limited (HPSEBL) has announced a record profit of Rs. 315 crore for the financial year 2024–25, marking the first time the power utility has reported a net gain in its operational history.
The claim, touted by the State government as a milestone achievement under Chief Minister Sukhvinder Singh Sukhu’s leadership, comes amid ongoing scrutiny of the financial health of public sector undertakings in Himachal Pradesh. Officials attributed the turnaround to cost-cutting measures, revenue augmentation, and fiscal discipline, stating that the reforms reflect the government’s commitment to self-reliant governance and administrative transparency.
According to official data, HPSEBL’s earlier years were marked by consistent deficits, leading to cumulative losses running into several thousand crores. The turnaround, officials claim, was achieved by curbing avoidable expenditure, restructuring power purchase agreements, and enhancing billing efficiency.
The government also announced a major jump in employee welfare spending, approving Rs 368.89 crore for gratuity, pension arrears, medical reimbursements and leave encashments in FY 2024–25, compared to Rs 87.56 crore in the previous year. Of this, Rs 187.86 crore has already been disbursed by July-end.
Chief Minister Sukhu congratulated HPSEBL’s staff and management, crediting “honest governance and clear policy” for the improved performance. He also linked the power sector reforms to wider structural changes, pointing out that similar improvements in the education sector had helped Himachal Pradesh jump from 21st to 5th position nationally in terms of education quality.
However, independent observers note that the profit needs to be read in the context of the Board’s existing liabilities and financial commitments, cautioning that true sustainability would require a deeper restructuring of the state’s energy sector.
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