Bihar to take PPP route to trim T&D losses

The state government has decided to roll out Public-Private Partnership (PPP) model to trim high transmission and distribution (T&D) losses. It is planning to privatise energy distribution network in more than a dozen towns of the state.

"We are very serious about this," said Sanjeev Paundrik, Principal Secretary of the Energy Department, "and therefore we are taking every possible step in this regard. In next two years, we would have more than adequate power. However, high T&D losses are still a matter of concern."

He said that the power situation will improve in next two years as the state government is seriously working on transmission and distribution. "The erstwhile Bihar State Electricity Board has been unbundled into five separate companies for holding, generation, transmission and distribution. We have also set up a Joint Venture with PowerGrid to strength our transmission network. The state government is also developing several new grids with the help of our private partners. We hope that in next two years, our labour will bear fruits," said the official.

The state government has also begun the privatisation process for energy distribution network in more than a dozen towns of the state. Paundrik stated, "We have issued letters of intent (LoI) to chosen companies for Muzaffarpur and Bhagalpur. We are now planning to bring 12 more towns in the state under the franchise model. Tenders in this regard will be invited soon." The state government is also aiming for 100 per cent metering of energy consumers by the end of June. Till date, it has been able to meter only 3.1 million consumers out of a total consumer base of 3.5 million.