Bihar’s Power Distribution Reforms Gain National Recognition as NBPDCL and SBPDCL Achieve ‘A’ Grade in PFC Rating

Both power distribution companies of Bihar—North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL)—have been awarded ‘A’ Grade in the 14th Integrated Rating and Ranking of Power Distribution Utilities, released by Power Finance Corporation Limited (PFC) under the framework approved by the Ministry of Power.

The achievement marks a significant milestone in Bihar’s power sector reform journey, placing the state’s DISCOMs among the better-performing utilities at the national level. The improved ratings reflect sustained progress in financial discipline, operational efficiency, governance standards, and consumer-focused initiatives.

Expressing satisfaction over the national-level recognition, Hon’ble Energy Minister of Bihar, Shri Bijendra Prasad Yadav, said that under the leadership of Hon’ble Chief Minister Shri Nitish Kumar, the state’s power distribution companies have been consistently improving their performance while ensuring uninterrupted and quality electricity supply to consumers.

Commenting on the development, Shri Manoj Kumar Singh, Energy Secretary-cum-Chairman and Managing Director, Bihar State Power Holding Company Limited (BSPHCL), said that the ‘A’ Grade awarded to both NBPDCL and SBPDCL validates the sustained reform measures undertaken across Bihar’s power distribution sector. He added that focused interventions in operational efficiency, financial management, digital initiatives, and consumer-centric service delivery have begun to deliver tangible results, and the state remains committed to further strengthening governance, reliability of supply, and consumer experience through continued reforms and technology-driven solutions.

In the national assessment, NBPDCL recorded an integrated score of 82.02, securing an ‘A’ Grade, with a 13th rank among all power distribution utilities in the country and 7th rank among State-owned DISCOMs. The utility has upgraded from its earlier ‘B’ Grade, reflecting consistent improvements in billing and collection efficiency, AT&C loss reduction, financial management, and governance practices.

Meanwhile, SBPDCL achieved an integrated score of 67.37, also earning an ‘A’ Grade at the national level. The utility ranked 20th among all DISCOMs and 12th among State-owned DISCOMs, marking an upgrade from its previous ‘B-’ Grade. The improved performance reflects focused efforts on enhancing revenue realisation, strengthening operational controls, reducing the ACS–ARR gap, and reinforcing governance mechanisms.

The Integrated Rating Exercise evaluates the financial and operational performance of 65 power distribution utilities across India. The methodology, approved by the Ministry of Power, is based on 15 base performance parameters and 9 disincentive metrics, resulting in a comprehensive score out of 100. Key evaluation areas include profitability and cash position, ACS–ARR gap, billing and collection efficiency, subsidy realisation, distribution losses, corporate governance, and adherence to tariff cycle timelines.