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Anil Sasi

Utilities unable to implement reform processes

New Delhi , Oct. 22

Funds released by the Centre to enable State distribution utilities to undertake power sector reforms are getting stuck with the State Governments and finding their way to the utilities concerned only after prolonged delays.

The funds disbursed under the Centre's key power reform tool — the Accelerated Power Development and Reform Programme (APDRP) — are facing delays of six months to over a couple of years before States actually pass them on to the utilities concerned. This has been causing delays in taking up the implementation of reform processes. The Centre is planning to take up the issue strongly with the State Governments that are delaying transfer of funds, Government officials said.

Reform funds

Under the APDRP, the Centre releases funds to State Governments annually based on distribution efficiency schemes proposed by them, following which the money is to be passed on to distribution utilities to undertake each of the specified strengthening and upgradation of sub-transmission and distribution level projects. Delays in fund transfer have also raised apprehensions about State Governments possibly putting the money to other use before finally passing it on to the utilities, officials said.

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