Orissa launches Rs2,400 crore CAPEX programme

Orissa launches Rs2,400 crore CAPEX programme

Bhubaneswar: Often criticised for high rate of aggregate technical and commercial loss, the Orissa government on Monday launched a Rs2400 crore capital expenditure (CAPEX) programme to improve electricity distribution system.

The programme, launched by chief minister Naveen Patnaik, targeted reduction of tranmission and distribution loss by 12% in four years.

While the state government would invest Rs1200 crore, the distribution companies have agreed to invest another Rs1200 crore for strengthening power tranmission system.

“We face 39% T&D loss due to old transformers, old supply wires and other equipment used in the system," said energy secretary P K Jena adding distribution companies would be asked to reduce losses by 4% every year.

The state government would provide Rs1200 crore to distribution companies in phases, he said.

The state government was hopeful of bringing down the rate of losses to 12-13% from 39%, Jena said.

Giving details of the state’s share, Jena said Rs500 crore would come from the 13th finance commission award, rest would be met from the state’s own resources.

Grid Corporation of Orissa (Gridco) now sustains a loss of Rs300 crore every year. Loss could be saved after the system was revitalised with new and modern equipment in the transmission network, Jena said.

There would be three-tier monitoring system to ensure that the CAPEX programme was properly implemneted, Jena said. The distribution companies were asked to prepare detailed project reports (DPRs) for renovation of transmission and distribution system within one year, he said.

Electricity consumer base which now stood at 28 lakh, could reach 70 lakh by 2012 with the state government planning to provide power to every houses through Rajiv Gandhi Grameen Vidyutkaran Yojana (RGGVY), Biju Gramy Vidyutkaram Yojana and Biju Saharanchal Vidyutkaran Yojana.