Rs 864 cr tenders floated under Capex programme

Programme aimed at slashing AT&C losses of four discoms

Tenders worth Rs 864 crore have been floated to procure equipment for implementing the capital expenditure (Capex) programme.

The Capex programme is aimed at slashing aggregate technical & commercial (AT&C) losses of four distribution companies (discoms)- Central Electricity Supply Utility of Odisha Ltd (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).

Funds to the tune of Rs 248.95 crore have been utilized so far under Capex. Out of 70 turnkey contract packages, 50 packages have been awarded till date.

The Capex programme was conceptualised in 2010-11 with an outlay of Rs 2,400 crore.

Out of the total expenditure of Rs 2,400 crore, the state government was to provide Rs 1,200 crore while the four discoms- Central Electricity Supply Utility of Odisha Ltd (Cesu), North-Eastern Electricity Supply Company of Odisha (Nesco), Southern Electricity Supply Company of Odisha (Southco) and Western Electricity Supply Company of Odisha (Wesco) were to mobilize the remaining Rs 1,200 crore.

Of the financial assistance of Rs 1,200 crore to be provided by the state government, Rs 500 crore would come from the 13th Finance Commission which is to be passed on to the discoms with zero per cent interest. The Capex programme is aimed at bring down AT&C loss by 12 per cent during 2010-11 to 2013-14. Presently, AT&C loss stands at 39 per cent. One per cent reduction of AT&C loss will contribute Rs 60 crore per annum to the state government. But due to delay in placement of work orders as well as non-arranging of counterpart funding by Reliance Energy controlled discoms — Nesco, Wesco and Southco, the work could not be executed in project areas as per schedule.

Due to non-reduction in AT&C losses, the losses of discoms kept mounting year on year because of which they were unable to pay the monthly dues of state owned bulk power purchase Gridco.

The discoms had to grapple with AT&C loss of Rs 278.83 crore for 2012-13 due to slow execution of Capex work.