Cesu to get R-APDRP funds from 2013-14

Since electricity distribution was privatised, discoms were bereft of any funding under original APDRP scheme

Central Electricity Supply Utility of Odisha Ltd (Cesu), a distribution company managed by the Odisha Electricity Regulatory Commission (OERC) is set to get funding under Restructured Accelerated Power Development and Reform Programme (R-APDRP) from this fiscal.

Since the electricity distribution business was privatised in Odisha, the discoms were bereft of any funding under the original APDRP scheme. But the Union power ministry considered the case of Cesu for financial assistance on the condition that the money will be routed through the state government.

“We have got assurance from the central power ministry that Cesu will get funds from this fiscal under R-APDRP. A quadripartite agreement will be signed among the ministry, Power Finance Corporation (PFC), Odisha government and Cesu for release of funds. Initially, the Centre has agreed to include two operational areas of Cesu- Bhubaneswar and Cuttack for funding,” said a senior official of state energy department.

R-APDRP is aimed at upgrading the sub-transmission and distribution network, including energy accounting and metering in the urban areas having population of more than 30,000.

The state government has identified 12 such towns that meet the criteria. The funding for all these towns has been estimated at Rs 410 crore. This includes Rs 190 crore receivable fund from the Centre and the residual Rs 220 crore to be raised by Cesu as counterpart funding.

In November last year, the state government had given its consent to receive funds under R-APDRP, channelising them to distribution sector in Cesu area as per requirement of the scheme, undertaking responsibility of fulfilling the conditions prescribed in the scheme and accepting the obligation of the repayment of the loans.

It may be noted that the Odisha government has been persistently demanding financial assistance under R-APDRP. Chief Minister Naveen Patnaik had sought the intervention of Prime Minister Manmohan Singh in this connection in February last year.