Odisha eyes 5% cut in AT&C loss in 2016-17

In the last fiscal, overall AT&C loss by the four discoms in the state went down 3% from 38% to 35%

Saddled with steep AT&C (Aggregate Technical & Commercial) losses, Odisha is aiming to cut the loss by 5% this fiscal and reduce it to 26% by the end of FY19. The 1% loss in AT&C loss means Rs 80 crore revenue for the state coffers.

In the last fiscal, the overall AT&C loss by the four distribution companies (discoms), Central Electricity Supply Utility of Odisha (Cesu), North Eastern Electricity Supply Company of Odisha Ltd (Nesco), Western Electricity Supply Company of Odisha Ltd (Wesco) and Southern Electricity Supply Company of Odisha Ltd (Southco), went down 3% from 38% to 35%.

Though Odisha was the first state to open up the power sector for reforms through unbundling and corporatising the erstwhile state electricity board in the mid 90s, the AT&C losses reigned high. 

Also, privatisation of electricity distribution business made Odisha an ineligible state to avail funds from the centrally sponsored Accelerated Power Development & Reforms Programme (APDRP).

To curb the ballooning AT&C losses, the state government, on its own, launched the ambitious Capital expenditure (Capex) programme with an outlay of Rs 2,400 crore. AT&C loss has steadily declined from the high of 56.71% in 2000 to 35% by the end of 2015-16.

Of the targeted Rs 970 crore spending delineated in the detailed project report (DPR) in the first phase of Capex, the discoms have spent Rs 632 crore.

The first phase of Capex is expected to be completed shortly. Second phase of this scheme is redundant with the introduction of new schemes like Integrated Power Development Scheme (IPDS), Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and Odisha Distribution System Strengthening Programme (ODSSP).

The state government has estimated the cost for the four discoms under IPDS at Rs 2,206 crore. However, Power Finance Corporation (PFC) has appraised the cost at Rs 1,079 crore.

The outlay under DDUGJY for Odisha has been pegged at Rs 4,500 crore for two phases. Phase I of this scheme has been approved by Rural Electrification Corporation (REC). The cost of IPDS has been assessed at Rs 4200 crore.

Under ODSSP, 500 new 33/11 KV sub-stations are to be put up during 2014-19 period. Implementation of the programme is estimated to cost Rs 4,500 crore. As many as 181 sub-stations are to be built in the first phase for which construction is underway at different sites.

By the end of 2014-15, the cumulative losses of the four discoms has swelled to Rs 5,939 crore including a loss of Rs 1,232 crore in FY15 alone. Loan amount outstanding on these discoms (as on March 2015) stands at Rs 6,096 crore.