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Bihar: has achieved a significant milestone in the country’s power sector by earning national recognition in the latest integrated rating of electricity distribution utilities. Both North Bihar Power Distribution Company Limited and South Bihar Power Distribution Company Limited have been awarded an A Grade in the 14th Integrated Rating and Ranking of Power Distribution Utilities. This assessment was released under a framework approved by the Ministry of Power, placing Bihar among the better-performing states in electricity distribution.

National Recognition for Bihar’s Power Sector

The improved grading reflects consistent progress made by Bihar’s power distribution companies in key operational and financial areas. The A Grade status highlights improvements in efficiency, governance practices, and consumer-oriented service delivery. Among power utilities across India, Bihar’s distribution companies have emerged as examples of steady reform and performance enhancement, especially when compared to earlier evaluation cycles.

Leadership and Policy Direction Behind the Achievement

Expressing satisfaction over the accomplishment, Energy Minister Bijendra Prasad Yadav credited the outcome to strong leadership and policy focus. He stated that under the guidance of Chief Minister Nitish Kumar, the state’s power distribution companies are consistently strengthening their operational capabilities while ensuring reliable and quality electricity supply to consumers across urban and rural areas. According to the minister, uninterrupted power and improved service standards remain central to the government’s energy vision.

Administrative Perspective on Sector Reforms

Senior IAS officer Manoj Kumar Singh, who serves as Energy Secretary-cum-CMD of Bihar State Power Holding Company Limited, described the A Grade as a strong validation of long-term reforms undertaken in the power sector. He highlighted progress in financial discipline, digital systems, and consumer-centric initiatives. According to him, the focus going forward will be on strengthening governance structures, enhancing supply reliability, and improving overall customer experience through technology-driven solutions and continuous reforms.

Performance Highlights of NBPDCL

North Bihar Power Distribution Company Limited recorded an integrated score of 82.02, securing the 13th position among all power distribution utilities nationwide and ranking 7th among state-owned distribution companies. This marks a significant improvement from its earlier B Grade. The higher score reflects gains in billing efficiency, improved collection mechanisms, reduction in aggregate technical and commercial losses, and better financial management practices. Governance reforms and operational monitoring also played a key role in elevating its national standing.

Performance Highlights of SBPDCL

South Bihar Power Distribution Company Limited achieved an integrated score of 67.37, placing it 20th among all distribution utilities in the country and 12th among state-owned entities. This represents a clear upgrade from its previous B- Grade. The improved performance is attributed to focused efforts in revenue realisation, stronger operational controls, narrowing the cost and revenue gap, and reinforcing governance and compliance mechanisms. These steps have contributed to a more stable and accountable distribution system in the southern region of the state.

About the Integrated Rating Exercise

The Integrated Rating and Ranking Exercise evaluates 65 power distribution utilities across India using a comprehensive framework. Companies are assessed on 15 base performance parameters along with nine disincentive metrics, leading to a final score out of 100. Evaluation areas include profitability, cash position, billing and collection efficiency, subsidy realisation, distribution losses, corporate governance standards, and adherence to tariff timelines. The exercise aims to encourage transparency, competition, and continuous improvement among power utilities.

What This Means for Consumers and the State

The A Grade recognition is expected to boost investor confidence, improve operational morale, and ultimately benefit electricity consumers in Bihar. Better-rated utilities are more likely to attract funding, implement advanced technologies, and deliver improved service quality. For the state, the achievement signals that sustained reforms in the power sector are yielding tangible results, strengthening Bihar’s position in the national energy landscape.