State Electric and Trading Company (STELCO) - the state owned utility company suffers MVR60 million in losses every year, Managing Director Ahmed Zuhoor said Friday.
However he said the loss will be reduced with tariff prices kept at a constant without increase in future.
While speaking at a newly aired show on TVM, Zuhoor explained how the company had suffered through an operating loss exceeding MVR 60 million each year for the past three years - emphasizing on the uncontrolled expenditure pattern in the company which needs to be put on a well regulated leash, in order to reduce further losses. He also noted that such responsibilities fall under the managing director.
"The company suffers MVR 60 mil in loss per year, but I am challenging this. Stelco will become a profitable company" he said.
"Tariff prices been kept at average level since 2005, while salaries of Stelco staffs had been MVR 3,000 on average, that has increased to MVR 10,000 to MVR 15,000 on average - and living expenses have bumped 300%. Government's approach is to provide investment and for the company to take profit from tariff charges alone. Our aim is to reduce the operating loss while we are able to cover our expenses."
Stelco's Managing Director highlighted that 70% of the company's income is spent on fuel combustion required to power the generators housed at Stelco powerhouse - out of which 60% energy is wasted.
In addition, he noted the company has initiated the production and manufacturing of water bottles from the energy that was capped as waste - in an approach to increase productivity and generate profit.
