BackPower reforms scheme deadline may be extended
A two-year extension will be given to states where R-APDRP is being implemented in 1,402 towns
Premium(Theft and losses during transmission and billing in an improperly monitored distribution system are estimated at around 27% of revenue. )
New Delhi: The government may not extend its scheme to narrow power transmission and distribution losses to more towns as proposed earlier, two government officials aware of the situation said. A two-year extension will, however, be given to the states where the scheme is being implemented in 1,402 towns, they said, requesting anonymity.
The Restructured Accelerated Power Development and Reform Programme (R-APDRP) will not be extended to private distribution companies and more towns as the power ministry had proposed, one of the officials said.
R-APDRP aims at upgrading distribution systems, minimizing transmission and distribution losses, improving metering and assigning responsibility for the realization of user charges. The first part of the R-APDRP involves setting up an information technology system to collect baseline data, besides details on customer services and accounting for energy use. The second part involves strengthening the distribution system.
Theft and losses during transmission and billing in an improperly monitored distribution system are estimated at around 27% of revenue. These losses range from about 14% in Himachal Pradesh to 74.3% in Jammu and Kashmir, according to 2010-11 data. Accumulated losses of distribution companies were estimated to be 1.9 trillion as on 31 March 2011.
“Inefficient distribution systems lead to disturbed flow of electricity so it is important for more states to improve them. Time given for completing a baseline survey of distribution systems under the scheme has been extended," the second official said.
In November, the Planning Commission had accepted the power ministry’s 64,559 crore plan to extend assistance to private distribution companies, lower the population eligibility criteria for the town to be included in the scheme and include computerization of key activities such as billing.
But the finance ministry’s expenditure finance committee (EFC) recently recommended against the extension while allowing the deadline for the existing 1,402 towns in the scheme to complete the first part of R-ADRP to be extended by two years, the secon official said. A decision on the matter will be taken by the Cabinet, the official said.
The EFC appraises government schemes to recommend them to the Cabinet for continuation and expansion.
Mint reported in January that distribution companies were seeking an extension of the 18-month deadline for completing the first part of the scheme after which their loans can be converted into grants.
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