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Andhra Pradesh power distribution companies will get a loan of Rs 2,500 crore from Rural Electrification Corporation for improving the distribution network.
REC, a nodal agency for the National Electricity Fund (NEF) scheme, has proposed to sanction the loan for system improvement schemes. The objective of the NEF scheme is to reduce distribution losses and improve quality of power as well as to improve the financial performance of utilities like reduction of gap between average revenue realisation (ARR) and average cost of supply (ACS).
“For the proposed loan of Rs 2,500 crore, an interest subsidy of maximum five per cent will be reimbursed to AP discoms under the NEF scheme, subject to achieving the targeted parameters like reduction of ARR-ACS gap and reduction of line losses by certain percentage,” Principal Secretary (Energy) M Sahoo said.
“The State has reduced the transmission and distribution losses to 16.17 per cent, as against the national average of 26 per cent, and increased the transmission availability to 99.89 per cent, apart from providing satisfactory power supply to all categories of consumers in the State to the extent possible,” he said.
amitmitra@thehindu.co.in
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