HASSAN: The Government has decided to avail itself of a term loan of Rs. 4,000 crores for improving the power situation in the State from Rural Electrification Corporation Limited, Minister for Public Works and Energy H.D. Revanna said here on Sunday.

Launching the Rajiv Gandhi Rural Electrification Programme (RGREP) to provide power connection to 54 lakh families in rural areas, he said it has been decided to earmark Rs. 2,000 crores for Karnataka Power Transmission Corporation Limited (KPTCL) of the loan amount to improve the power distribution network.

A sum of Rs. 1,000 crores has been earmarked for the five electricity supply companies and Rs. 1,000 crores Karnataka Power Corporation Limited (KPCL) for the supply of quality power and for power generation.

Admitting that KPTCL is facing problem with its distribution network, Mr. Revanna said despite 950 sub-stations, it has become difficult to supply power for more than five hours from 600 stations.

It has been decided to spend Rs. 2,700 crores on improving the distribution system. By the end of the year, 360 sub-stations will be set up. It has also been resolved to purchase one lakh cement poles.

With the improvement in hydel power generation following the copious rainfall and by cutting down unwanted expenditure, KPTCL has been able to save Rs. 600 crores, he added.

On the problems being faced by the electricity supply companies because of shortage of technical personnel, he said efforts are on to recruit 700 engineers. The services of more than 7,000 employees have been confirmed.

With regard to revision of payscales of the employees, he said he has discussed the issue with Minister for Finance P.G.R. Sindhia and the latter has agreed to examine the proposal.

"The Ministry has decided to appoint technical persons as managing directors of electricity supply companies," he said.

Mr. Revanna also directed the Chamundeshwari Electricity Supply Company to complete the work to provide electricity connections to 20,000 of the 41,585 below poverty line families by March this year.

He said sub-division offices would be set up in Kollegal, Nagamangala, Mysore and Hassan rural areas.

Referring the problem of unauthorised power connections, he said there are 1,35,000 such connections and over 71,000 people have applied for regularisation.

While 17 districts are ready to launch the Rajiv Gandhi Rural Electrification Programme, the others will get the sanction soon.

Project Director of Rural Electrification Corporation Limited Rakesh Arora said the corporation will release the loan amount in phases.

Managing Director of Chamundeshwari Electricity Supply Company Vijayanarasimha, Deputy Project Director Prasad, Chief Engineer Sreedhar, and Superintending Engineer Ramesh, were present.

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