The Reliance Energy owned Southern Electricity Supply Company of Orissa Ltd (Southco), one of the four power distribution utilities in the state, plans to spend Rs 492 crore in the next four years to reduce the aggregate technical and commercial (AT&C) loss by 21 percent by 2013-14.
The present AT&C loss of Southco is estimated at 50 per cent and the company intends to reduce the loss to 29 per cent in the next four years. Southco's AT&C loss is expected to come down to 47 per cent by the end of the current financial year.
Out of the total estimated cost, the Orissa government will provide Rs 109.33-crore as a soft loan with an interest rate of 4 per cent and Rs 136.67-crore without any interest.
The remaining Rs 246 crore will be raised by the distribution company from its own resources.
Besides reducing the AT&C loss, the amount will also be utilized for the improvement of power distribution system and to avoid low-voltage in some parts of the distribution area. Southco has been assigned the responsibility to distribute power in 10 districts of south Orissa including Ganjam, Gajapati, Koraput, Rayagada, Nabarangapur, Malkanagiri, Kalahandi, Nuapada, Kandhamal and Boudh.
The other three distribution companies including Wesco, Nesco and Cesco are also getting the funds from the state government to reduce their AT&C losses.
“The state government will spend around Rs 2400-crore for reduction of AT&C losses. Out of it, the Southco will get Rs 492 crore”, the vice-president of Southco, Tapan Mishra told Business Standard here.
“The distribution company would spend Rs 61.50 crore in the current year and Rs 123-crore in the next fiscal. The company aims to spend 1Rs 33.25-crore and Rs 174.25 crore in 2012-13 and 2013-14 respectively”, he said.
The distribution company and the state government are bearing huge revenue loss as the AT&C loss is rampant in the districts of south Orissa. Apart from AT&C loss, there is theft of power, tampering of meters, non-deposit of the electricity dues.
“If the AT&C loss is reduced by one per cent, the company could save around Rs 200 crore”, Mishra claimed.
As a part of its plan to reduce AT&C loss, Southco has planned to install pre-paid meters in some of the urban areas and also install the meters in the poles.
Besides, power supply would also be made through the insulated bunch cables in some of the areas.