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Sunday, Jul 11, 2004

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Power Minister calls for reduction in distribution losses

By Our Special Correspondent

NEW DELHI, JULY 10. While promising to strengthen the power reforms programme, the Power Minister, P.M. Sayeed, today urged both public and private sector power companies to reduce the technical and commercial losses during distribution to check the rising energy shortage.

Speaking at the inauguration of a workshop on "Accelerated Power Development and Reforms Programme (APDRP)," he said that though the power sector had made substantial progress in recent years, distribution services needed to be modernised and made consumer-sensitive.

He assured, however, the power reforms programme would be further strengthened during the current fiscal and independent evaluation initiated.

Besides, he said the procedures for providing incentives to the States would be simplified.

So far, Rs. 4,112 crores had been released under APDRP out of which Rs. 3,454 crores had been used.

He commended Andhra Pradesh, Haryana, Gujarat and Maharashtra for reducing their electricity-related losses by Rs. 1,765 crores.

Incentives amounting to Rs. 882 crores had been given to these States during 2003-04 for loss reduction.

The incentives scheme would be simplified to encourage more States and power utilities to reduce their losses, he said.

Earlier, delivering the keynote address, the Power Secretary, R.V. Shahi, said the APDRP aimed at not just reducing the losses but also improving the quality and reliability of supply.

A Power Ministry statement says the APDRP has two components — an investment and an incentive component.

While the investment component focuses on specific projects in upgrading sub-transmission and distribution network, the latter gives incentives to the State Governments up to 50 per cent of the actual loss reduction by utilities as a grant.

An amount of Rs. 1,759 crores was provided in the last financial year as incentive component.

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