November 10, 2001

PARLIAMENTARY CONSULTATIVE COMMITTEE ON POWER MEETS IN PONDICHERRY

INFORMATION TECHNOLOGY TO BE ADOPTED FOR REDUCTION OF TRANSMISSION AND DISTRTIBUTION LOSSES : SURESH PRABHU

        The Union Power minister Shri Suresh Prabhu informed that Information Technology will be used substantially for reducing transmission and distribution loss in the country, which is significantly higher than the levels prevailing in many of even developing countries. A round table with Information Technology players would be conducted at Bangalore in December this year for evolving at a benchmark for its adaptation in transmission and distribution of power. He asked the Central Electricity Authority to work out losses from the Transmission and the Distribution sectors separately. He felt that the transmission sector is highly efficient whereas the distribution side contribute to the colossal loss.

        The Ministry is organizing 4000 roadshopws nationwide for creation of awareness about various aspects related to power sector reforms, among present and future stakeholders such as children, farmers and professionals.

        The overall transmission and distribution loss in India is worked out to be 25% and the actual figure could be even higher. Ironically, the States that underwent restructuring in their Electricity Boards show the figure of 35-50% of loss. The figure was hovering around 15% that was at par with developed countries till 1966. As per norms, equal amount of investment has to be devoted for power generation on the one hand and transmission distribution and rural electrification on the other. But the stark reality is that for every 1 rupee invested on generation, only 3 paise to 7 paise is earmarked for transmission, distribution and rural electrification component. India has the capability to bring the losses below 15%, but commercial losses due to theft and pilferage accounts for the higher figure. Technological innovations such as tamper proof electronic and prepaid metering systems could held in substantially reducing the loss figure. By the year end, 100% metering is aimed at all across the nation.

        The Central Electricity Authority has issued guidelines in 1991 and 2001 for restructuring of power systems and energy auditing. To improve the commercial viability of State Electricity Boards, the Central Government has come out with a novel scheme called Accelerated Power Development Programme (APDP). It is expected to provide leverage to reforms in the sector. For the last fiscal Rs.1000 crore has been earmarked for the programme and for the current financial year Rs.1500 crores has been allocated. This is over and above the normal central plan allocation to the states. 25% each of grant and loan would be provided to project reports emanating from states and the rest of the amount can be mobilized from within the state resources and financial institutions. 60 circles of power distributions from all over the country have been identified under the scheme for development as centers of excellence. So long as the distribution is weak, private players would not be interested in the sector.

        The Minister said that problems in the system should be localized for better identification of problems and improvement. Incentive for collection would help reduce commercial losses. Quality of power is of prime importance for the consumers and while ensuring the same, accountability should also be maintained. The Central Electricity Authority has come out with minimum quality standard for installing transformers.

        The Minister defined power theft as consumption unpaid. In the name of agriculture, theft is being reported. It is also found out to be prevailing in industry. Feeder level accountability would greatly help check financial losses since most part of the loss is reported at this level. Now, meter is installed only at generation points and at the ends of the consumers. The Minister stressed that right from the generation level, to the transmission stage covering 400 to 600 kV, distribution level covering substations of 33 to 11 kVs, 11 KV feeders, distribution transformers, distribution of 0.4 kV low tension network and at the ends of consumers, full proof metering should be installed so as to ensure accountability. District level committees should also be formed to reduce the loss. Next intra-session proposed at Delhi would concentrate on rural electrification, he added.

        The Minister of State for Power Smt. Jayawanti Mehta, emphasized on rural electrification. This is the first ever Consultative Committee meeting to be held in Pondicherry.

        The members congratulated the Ministers and officials for coming out with efficient schemes for reducing the loss. Shri Suresh Chandel, Dr. Raghuvansh Prasad Singh, Shri Vijyendra Pal Singh, Shri Subodh Ray, Shri Jai Bhadra Singh, Dr. S Venugopal, Shri Shankar Prasad Jaiswal, Smt. Prabha Rau, Dr. Charan Das Mahant, all Members of Lok Sabha, Shri Manohar Kant Dhyani, Member of Rajya Sabha and Prof. Ram Deo Bhandary, permanent special invittee, Shri A K Basu, Secretary (Power) and other senior officials and Chairmen-cum-Managing Directors of the Public Sector Power Enterprises attended the meeting.