State Seeks Rs 4.2K Cr Assistance to Cut AT and C Loss

Published: 27th April 2015 06:03 AM  |   Last Updated: 27th April 2015 06:03 AM   |  A+A-

BHUBANESWAR:  Having failed to achieve progressive technical and commercial loss reduction target set by the Ministry of Power, the State Government has decided to seek financial assistance of `4,200 crore from the Centre under Integrated Power Development Scheme (IPDS).

The distribution companies have been asked to assess their need for strengthening urban distribution networks and prepare detailed project reports (DPRs) for Central assistance under the scheme. The DPRs will be placed for approval of the monitoring committee under the chairmanship of the Energy Secretary.

Minister of State for Energy Pranab Prakash Das said projects worth `4,200 crore under IPDS will be submitted to the Centre. The Power Finance Corporation (PFC) is the nodal agency of the Centre for sanction of projects.

After the launch of IPDS in November last year, the Revised Accelerated Power Development and Reform Programme (R-APDRP) subsumed in the new scheme. However, unlike R-APDRP, private distribution companies are eligible for funding under IPDS.

The IPDS assistance will be utilised to strengthen sub-transmission and distribution network and metering of distribution transformers/feeders/consumers in urban areas.

The scheme will help in reduction in aggregated technical and commercial (AT&C) loss, establishment of IT-enabled energy accounting and auditing system, improvement in billed energy based on metered consumption and improvement in collection efficiency, the Minister said. 

The loss reduction programme of the State has gone haywire due to severe financial constraints faced by the distribution companies. Withdrawal of R-APDRP assistance under the plea that distribution business in the State is under private management by the previous UPA government had further aggravated the situation.

The average AT&C loss in the State is nearly 40 per cent and the Power Ministry has set a target to bring down the loss level to 30.5 per cent by the end of 12th Plan.

After years of cajoling, the Ministry of Power agreed to provide financial assistance of `396 crore to CESU. The PFC has so far released `79 crore for the utility and the assistance will be channelised through Gridco.

Three discoms - North Eastern Electricity Supply Company (Nesco), Western Electricity Supply Company (Wesco) and Southern Electricity Supply Company (Southco) - which were previously managed by Reliance Infrastructure, will now be eligible to get the Central assistance, the Minister said.

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