30th October, 2002
Ministry of Power  


APDRP FUNDS ONLY TO STATES IMPLEMENTING DISTRIBUTION REFORMS, SAYS POWER MINISTER


The Union Minister of Power Shri Anant G.Geete has said that the Centre will provide financial assistance to the State Electricity Boards (SEBs) under the Accelerated Power Development and Reform Programme (APDRP) for improving distribution network, reducing technical and commercial losses, increasing revenue realization and ensuring quality and reliable power supply to the consumers. Shri Geete was addressing the Members of the Consultative Committee of Members of Parliament attached to his Ministry at Kovalam in Thiruvananthapuram today.

The Minister told the Members that henceforth APDRP funds shall be released only to those States which agree to implement the distribution reforms, sign MOU (Memorandum of Understanding) and MOA (Memorandum of Agreement), Tripartite Agreement to securitise their old dues and seriously implement these agreements.

The Minister told the Members that for achieving the commercial viability of the SEBs, his Ministry had formulated a multi-pronged strategy at national level, State level, SEB/Utility level, distribution circle level, the feeder level and the consumer level. The objectives of the new scheme – APDRP – would be reduction of Transmission and Distribution (T&D) losses from the present 50% to around 10%, reduction of cash losses, improvement in quality of power supply, customer satisfaction and improvement in physical and financial performance of SEBs/utilities. APDRP fund amounting to Rs 1403 crore have already been released to various states. The Ministry has sanctioned various APDRP projects costing Rs.3984 crore during the current financial year.

Shri Geete told the Members that to help the SEBs/Utilities in efficient and professional implementation of the scheme, MOP appointed NTPC (National Thermal Power Corporation) and POWERGRID as lead Advisor-cum-Consultants (AcCs), whose main function was preparation of Project Reports, supervision and monitoring of the project implementation. NTPC & POWERGRID had already prepared fundable DPRs for 63 Circles identified as centres of excellence in the first phase. In the context of power sector reforms, a rating study of SEBs/Utilities by independent rating agencies has been taken up. The extent of facilitation and assistance from MOP would be determined by this rating. The MOP would regularly review the status of reforms in all States and the progress achieved by the SEBs/Utilities viz. a viz. commitments made by them in MOU and MOA, Shri Geete added.

The steps taken by MOP and the States had started showing results and the revenue deficit had already started reducing, Shri Geete added. In Rajasthan the deficit during 2001-02 was Rs.1200 crore as against Rs.1678 during the preceding year. Similarly Andhra Pradesh reduced the losses by Rs.697 crore. Karnataka reduced the losses by Rs.197 crore, and Haryana by Rs.205 crore. Assam which was incurring a monthly loss of Rs.28.36 crore could bring it down to Rs.4 crore in July 2002 and to Rs.3 crore in August. In UP, the daily collection increased from Rs.12 crore to Rs.16 crore.

Shri Geete said that T&D losses also started coming down. While in Rajastan losses came down to 38.26 per cent from 42.01 per cent, in A.P., it was brought down to 29.6 percent from 31.5 per cent and in Haryana the losses came down to 44.76 per cent from 48.96 per cent. The Minister said that the enactment of anti-theft legislation by the States also showed positive results. After enacting the legislation, an additional 47,000 consumers were assessed and dues of more than 50 per cent of them had been finalized resulting in additional billing of Rs 44 crore in Andhra Pradesh. In addition, 22 lakh unauthorized connections were also regularized. In Karnataka, nine lakh unauthorized connections were regularized and Rs.93 crore was collected as regularization fee.

In West Bengal, following the enactment of the legislation to curb power theft, under which it is a non-bailable offence, 2700 premises were raided, 350 FIRs lodged and 82 persons arrested in two months. While AP, Karnataka, West Bengal, UP and MP have already enacted similar legislation, Maharashtra and Punjab have taken steps in this direction. All the other States have been asked to enact such a legislation.

Shri Geete informed the Members that the financial health of the SEBs was a matter of great concern for the Centre, considering that their losses had reached an alarming level of Rs.33,000 crore, which is equivalent to about 1.5 per cent of GDP.

Consequently, the accumulation of outstanding payments by SEBs to Central Power Sector Undertakings (CPSUs) came to Rs.40,000 crore, seriously hampering their capacity addition programme. He described the core of the problem as the poor state of transmission and distribution system.

The Minister of State of Power, Smt. Jayawanti Mehta, also participated in the meeting. The Members who attended today’s meeting includes Dr. Raghuvansh Prasad Singh, Shri Dharam Raj Singh Patel, Shri Subodh Ray, Shri Shankar Prasad Jaiswal, and Smt. Prabha Rau, all from Lok Sabha, and Shri Manohar Kant Dhyani, Shri Bashistha Narain Singh and Shri Sunil Shastri, all from Rajya Sabha.

Shri Anant G.Geete and Smt.Jayawanti Mehta, along with Shri R.V.Shahi, Union Power Secretary, visited NTPC’s Kayamkulam Power Station last evening. They were accompanied by Shri C.P.Jain, CMD, NTPC. The team made a brief visit to the Main Plant and Unit Control Room along with senior officials of NTPC and inspected the plant operation. Shri CP. Jain, CMD briefed the functioning of the power station to the dignitaries. During the visit, Shri Geete inaugurated the NTPC Guest House ‘Kalpa Nikunj’ at Shaktipuram Township and addressed the employees of Kayamkulam project.