REC sanctions Rs 2,500 cr to Andhra discoms

The Rural Electrification Corporation (REC), a nodal agency for the National Electricity Fund (NEF) scheme, has proposed to sanction a loan of Rs 2,500 crore to AP power distribution companies (discoms) for further system improvement schemes like high voltage detection systems, feeder separation, installation of three phase metering, establishment of citizen service centres.

REC officials informed the Andhra Pradesh government that the objective of the NEF scheme was to reduce distribution losses and improve the quality of power as well as financial performance of the utilities like reduction of gap between average revenue realisation (ARR) and average cost of supply (ACS).

Disclosing this here , principal secretary (energy) M Sahoo directed APTransco chairman and managing director Hiralal Samariya to examine utilisation of the loan for strengthening and betterment of the sector so as to provide quality and satisfactory power supply to the consumers.

“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,” he said. Sahoo, who on Saturday was nominated as a member of NEF’s steering committee, said despite facing several challenges in the power sector, in view of severe shortage of fuel, the overall performance of the state had improved.

“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,” he said.