The Hindu Business Line : Recast power reforms programme cleared

New Delhi, July 31 Nearly a year and half into the current Plan period, the Government has finally given its nod for the continuation of its key power reform scheme during the Eleventh Plan.

The Accelerated Power Development and Reforms Programme (APDRP), in a new restructured format approved by the Centre on Thursday, entails funding to the tune of Rs 51,577 crore during the Plan period.

The Cabinet Committee on Economic Affairs (CCEA) here approved the proposal to continue the programme with revised terms and conditions, an official release said. The focus of the programme shall be on establishment of base line data and fixation of accountability, and reduction of aggregate technical and commercial (AT&C) losses through strengthening of sub-transmission and distribution networks and adoption of Information Technology, the release said.

Marking a departure from the APDRP in its previous avtar, the projects under the revised scheme shall be taken up in two parts. The first part (Part-A) would include the projects for establishment of baseline data and IT applications for energy accounting while the second part (Part-B) would focus on regular distribution strengthening projects.

Initially, 100 per cent funds for Part-A of the scheme and 25 per cent funds for Part-B projects shall be provided through loan from the Centre. For special category States, the Central loan for the Part-B projects will be 90 per cent while the balance funds shall be raised from financial institutions.

The entire amount of loan and interest for Part-A projects shall be converted into grant once the establishment of the required baseline data system is achieved and verified by an independent agency. Up to 50 per cent loan and interest of Part-B projects shall be converted into grant in five equal tranches on achieving the 15 per cent AT&C loss in the project area on a sustainable basis for a period of five years.

“If the utility fails to achieve or sustain the 15 per cent AT&C loss target in a particular year, that year’s tranche of conversion of loan to grant will be reduced in proportion to the shortfall in achieving the 15 per cent AT&C loss target from the starting loss figure,” an official said.

An amount equivalent to 2 per cent of the grant for Part-B projects is proposed as incentive of utility staff in project areas where AT&C loss levels are brought below 15 per cent. Participation of the private utilities in APDRP would be reviewed after a period of two years from the date of sanction of the restructured programme, officials said.

A steering committee under the Power Secretary would sanction projects and monitor the implementation of the revised Scheme.

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