Patna: Bihar’s power distribution sector has received a significant national endorsement, with both North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL) awarded an ‘A’ grade in the 14th Integrated Rating and Ranking of Power Distribution Utilities.
The rankings were released by Power Finance Corporation Limited (PFC) under a framework approved by the Ministry of Power, and place Bihar’s two DISCOMs among the better-performing electricity utilities in the country.
Officials said the improved grades reflect sustained progress in financial discipline, operational efficiency, governance standards and consumer-focused reforms — areas where Bihar’s power sector has historically struggled.
Welcoming the recognition, Bihar’s energy minister Bijendra Prasad Yadav said the result demonstrated steady improvement under the state’s current leadership. “Under the guidance of Chief Minister Nitish Kumar, Bihar’s power distribution companies are continuously strengthening performance while ensuring reliable and quality electricity supply to the public,” he said.
The state’s energy secretary and CMD of BSPHCL, Manoj Kumar Singh, described the ‘A’ grades as validation of reforms already underway. He said targeted interventions in billing and collection, digital systems and consumer services were beginning to deliver “tangible results”, adding that the focus would now be on sustaining momentum and further improving reliability and governance.
NBPDCL climbs into top tier
NBPDCL recorded an integrated score of 82.02, securing an ‘A’ grade and ranking 13th among all power distribution utilities nationally and 7th among state-owned DISCOMs. The utility has moved up from a ‘B’ grade in the previous assessment, a shift attributed to improved billing and collection efficiency, reduced aggregate technical and commercial (AT&C) losses, tighter financial management and stronger governance practices.
SBPDCL posts steady upgrade
SBPDCL achieved an integrated score of 67.37, also earning an ‘A’ grade. It was ranked 20th overall and 12th among state-owned utilities, improving from its earlier ‘B-’ grade. Officials said the upgrade reflected better revenue realisation, enhanced operational controls, a narrowing of the average cost of supply–average revenue realised (ACS–ARR) gap, and improved governance mechanisms.
How the ranking works
The Integrated Rating Exercise evaluates 65 power distribution utilities across India using a methodology approved by the Ministry of Power. Scores are calculated out of 100, based on 15 core performance parameters and nine disincentive metrics.
Key criteria include profitability and cash position, subsidy realisation, billing and collection efficiency, distribution losses, corporate governance standards and adherence to tariff cycle timelines.
For Bihar, analysts say the dual ‘A’ grades mark a symbolic shift — from a sector long associated with losses and inefficiency to one increasingly aligned with national reform benchmarks — even as challenges around affordability, infrastructure upgrades and future demand remain.
