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NEW DELHI : State-run firms under the union power ministry have upped their capital expenditure and spent 40,395.34 crore till December for FY 2021-22.

“Capex 47% higher than the expenditure incurred in FY 2020-21," Ministry of Power said in a statement and added, “It is to be noted that the CPSEs have also collectively met 80% of the capex target of FY 2021-22, i.e. Rs.50,690.52 crore."

This comes in the backdrop of the government rolling out the marquee 3.03 trillion power discom reform scheme, wherein the Centre’s share will be 97,631 crore. The funds will be released to discoms subject to them meeting reform-related milestones.

“The top performers among the power sector CPSEs include PowerGrid (90.6%), SJVN (90.19%) NTPC (86.5%) and THDC (85.38%)," the statement said.

This assumes importance given that the reforms-based result-linked power distribution sector scheme to be applicable till 2025-26 aims to reduce India’s aggregate technical and commercial (AT&C) loss to 12-15% from 21.83% in 2019-20, and gradually narrow the deficit between the cost of electricity and the price at which it is supplied to ‘zero’ by 2024-25.

India’s electricity availability has increased to 22 hours in rural areas and 23.5 hours in urban areas according to union power and new and renewable energy minister Raj Kumar Singh. The country’s electricity demand has picked up after the dip during the second wave of the coronavirus pandemic. As part of its energy transition efforts, India is also working towards electrification of economy by developing action plans for greening of electricity.

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