Although the loss shot up, net sales of the power utility went up to Rs 809 crore in the first half of the current fiscal from Rs 760 crore in the first half of the previous fiscal.

The company attributed the loss to the adverse impact of the unusual delay on the part of the state power department to allow the company a reasonable rate revision, and also because of higher interest and depreciation charges.

According to the notes to the second quarter results, "a tariff revision of approximately 9 per cent was allowed to the company in November 1996 after a gap of 22 months. After power purchase cost increases, this left a net margin available to the company of only two per cent. Therecent tariff revision becomes effective 19 October 1998."

The interest charge at Rs 154 crore during the first half is Rs 65 crore higher than that in the comparable period last year, while in the second quarter the figure is Rs 74 crore against Rs 41 crore reported in the corresponding period of the previous fiscal.

Depreciation in the first half is also higher at Rs 94 crore (Rs 40 crore) and in second quarter at Rs 47 crore (Rs 20 crore). The interest charges for the first half include impact of capitalisation of the 250mw first unit of the Budge Budge thermal power project.

The average tariff hike offered to the company by the state government has been about 20 per cent and this would add Rs 20 crore per month to the company's profit during the last four months of the current fiscal. As a result, the company is expected to contain its full year loss at Rs 100 crore for 1998-99 fiscal.