The Hindu Business Line : APTransco to invest over Rs 7,000 cr on reforms

ENCOURAGED by the top rating it got from Crisil in implementing power sector reforms, the Transmission Corporation of Andhra Pradesh Ltd has decided to invest over Rs 7,000 crore to implement reforms with renewed vigour.

"This will ensure quality and reliable power supply to all the consumers in the State," said Ms Rachel Chatterjee, Chairperson and Managing Director of Transco.

In a statement here on Sunday, Ms Chatterjee said Andhra Pradesh topped the rating list with 57.03 points, while Gujarat secured 53.61 and Delhi 51.91.

The 100-page reported titled `Power Sector Ratings 2004-05', prepared by ICRA and Crisil, , was released in Mumbai by the Minister for Power, Mr P.M. Sayeed, on Saturday.

"Our achievement clearly establishes the fact that autonomy proves to be the single most important ingredient needed for successful implementation of reforms," Ms Chatterjee said.

A variety of factors like the Government's commitment to implement reforms and timely payment of subsidy and coordinated efforts by stakeholders in controlling pilferage helped the power utilities achieved the distinction.

Acknowledging the role played by the Regulatory Commission, she said timely publication and rationalisation of tariff also helped improve the power sector performance.

In its report, Crisil observed that the successful implementation of reforms in Andhra Pradesh had resulted in significant improvement in investments, installed capacity and length of transmission lines.

The total installed capacity stood at 11,100 MW in 2004-05 as against 7,341 MW in 1999-2000. Despite free power, the State could bring down tariff for high-tension consumers by 4 per cent. The Transco release said that the utility was planning to spend Rs 2,000 crore on strengthening transmission and distribution network. This was Rs 600 crore more than last year's spending.

The utility would spend Rs 5,000 crore on the high voltage distribution scheme that was aimed at reducing losses and ensuring power supply without any voltage fluctuations in rural areas.

Mr Sayeed requested Ms Chatterjee to depute a team of experts to guide the power utilities elsewhere in improving their performance.

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