BackState-run firms under union power ministry record ₹32,137 crore capex
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
PremiumNew Delhi: State-run firms under the union power ministry have made a capital expenditure of ₹32,137 crore, which is 63.4% of the annual target for FY2021-22.
“For the financial year (FY) 2021-22 the target for Capital Expenditure (Capex) of the Central Public Sector Enterprises (CPSEs) of the ministry of power is ₹50,690.52 crore. During FY 2020-21, power sector CPSEs incurred a capex of Rs. 22,127 crore till the month of November which was 49.3% of the total expenditure for that FY," the union power ministry said in a statement.
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.
“Thus, the capex performance of the ministry in absolute as well as relative terms is better compared to the previous year. In absolute terms it has shown a growth of 45 % over last year’s performance," 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.
"In all, till the end of November, the power ministry has invested ₹35,628.6 crore in infrastructure development," the statement said.
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.
"Even in the schemes for infrastructure development, the ministry has been making good progress. It has spent ₹1593.72 crore in IPDS, ₹1007.51crore in DDUGJY and ₹890 crore in Transmission Development schemes for North Eastern region. Hence besides the expenditure of ₹32137.37 crore by CPSEs, an additional amount of ₹3491.23 crore has been invested in infrastructure through development schemes of the ministry," the statement said.
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 the economy by developing action plans for greening electricity.
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