Financial Daily from THE HINDU group of publications
Wednesday, Feb 15, 2006


Group Sites

Industry & Economy - Power

Power sector reforms figure in tenth mid-term appraisal meeting

G. Srinivasan

It was pointed out that aggregate technical and commercial (AT&C) losses could come down to around 20 per cent over the next two to three years if distribution transformer level accountability is put in place with staff being goaded with carrot atick.

New Delhi , Feb. 14

THE Prime Minister, Dr Manmohan Singh, today conducted a review meeting on the various suggestions of the Mid-Term Appraisal (MTR) of Tenth Plan (2002-07) with the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia.

Discussions were held on areas such as power and water sector reforms, ending Inspector Raj and how to get the National Horticulture Mission going.

Sources in the Government told Business Line here that the Prime Minister chaired the meeting in which selected action points for implementing the recommendations of the Mid-Term Appraisal made by the Planning Commission last year emerged for micro-level management.

The sources said that on the issue of power sector, the Accelerated Power Development & Reform Programme (APDRP) came in for deliberations. It was stated that poorly prepared project reports, lack of baseline data on distribution losses, billing/collection efficiency and lack of incentives for State Electricity Board staff to cooperate could be the reason for ARDRP not delivering results.

It was pointed out that aggregate technical and commercial (AT&C) losses could come down to around 20 per cent over the next two to three years if distribution transformer level accountability is put in place with staff being goaded with carrot and stick.

On the issue of APDRP restructuring entailing automated meter reading (AMR) of each distribution transformer, bifurcation of feeders (BOF) for agricultural pumping and other domestic, industrial and commercial loads and geographical information system (GIS) mapping and classification of all connections, the sources said that these jobs could be outsourced so that they could be done progressively in 12 months.

The idea is that if these things are put in place, energy flow balance for every distribution transformer every month could be identified and thefts or losses in each circle could be quantified. It was stated that baseline data could be built within three months of a circle completing AMR, BOF and GIS and putting loss data periodically on Web site, with names of circle officers could act as a deterrent.

The sources said that the Plan panel is in favour of providing 100 per cent Central funding as loan in support for AMR, BOF and GIS with a rider that one per cent loan would be written off for every 5 per cent of circles where AMR, BOF and GIS are completed and baseline generated. Water policy: On pricing of water, it was noted that fixing of water rates for irrigation and water supply is under purview of State Governments. The Twelfth Finance Commission had recommended Rs 600 per hectare for operation and maintenance of major and medium projects and Rs 400 per hectare for minor projects.

The likely solution to the sensitive issue of water pricing, the sources said, could be a menu of options. One is to promote Gujarat model of Participatory Irrigation Management (PIM), which empower user associations to collect tariff, raise tariff and retain part of it. Another is to offer more incentives to States to set up regulators raise water tariff and switch over to volumetric supply and more allocation to system rehabilitation in State budget.

On the action point for national projects, the Plan panel deems priority to international and inter-State projects, lower priority to intra-State projects and Nabard assistance for loan component and linkage to a package of reforms. Horticulture mission: On the National Horticulture Mission it was stated that out of Tenth Plan outlay of Rs 2,300 crore, the annual plan for the current fiscal has been provided at Rs 1,091 crore with the proposed outlay for next fiscal being pegged at Rs 1,209 crore.

Operational guidelines have been circulated and action plans had been approved for 18 States.

More Stories on : Power

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Weather concerns worry shrimp exporters — Arrivals likely to be delayed by a month

INTUC defends lower EPF rate
Chidambaram holds pre-Budget talks with Congress party
`Give infrastructure status for power generation biz'
2006 could see significant yuan revaluation
Punjab annual Plan at Rs 4,000 cr
CII unveils roadmap for industrial growth in North Bengal
Good monsoon, core sectors aid 7.5 per cent growth in AP
Eco management programme
Tourists may be able to use rupee in Mauritius
`Indian cos must explore opportunities in new areas'
Haldia Development Authority assets valued at Rs 605 cr
No major changes in conditions for ADB loans: Kerala Minister
Oil cos may get more freedom in pricing
Power sector reforms figure in tenth mid-term appraisal meeting
FAPCCI call to phase out CST
Montek calls for a rethink on coal pricing
Online B-school to launch India-specific courses
New management programme to let students get exposure to industry
France biz school promo
Kerala Chamber assails bid by postal dept to restrict courier cos
Uranium Corpn's assurance on mining practices
EU for time-bound, `balanced' outcome of WTO talks
Scrap drop-box system in banks: Consumer body
Max NY Life opposes EET, fringe benefit tax
Exports post 21 per cent growth in January
Ayurveda meet for French team at Kochi
Core manufacturing sectors — Domestic cos stealing a global march in efficiency benchmarks

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line