CEA prepares power distribution perspective plan to help stressed discoms

Draft to consider infrastructure, investment requirements of power distributing firms

A new ‘Long Term Distribution Perspective Plan’ is being drafted by the ministry of power to collate details of all the power distribution companies across the country. Being prepared by the Central Electricity Authority (CEA), this the first ever draft proposal aimed at envisaging the infrastructure and investments required by the various discoms across the country on an annual basis, till 2021-22. 

CEA has been deliberating upon a long-term perspective plan for the generation and transmission of power supply in the country and its plan on the issue is already out. The report on the distribution sector would be finalised within 3-4 months, said power ministry officials. Also, this would complement the efforts made by the states in favour of a restructuring program for discoms under the Ujwal Discoms Assurance Yojana (UDAY).

Earlier reports on generation and transmission created a stir in the power sector after the CEA estimated an 'end of road' for the thermal power industry in India in the coming decade. The CEA also said that the last mile infrastructure needs to grow in the states for robust power supply. The upcoming report would take the reforms forward to the last link of consumers, added the officials.

“The Centre has taken up this exercise to attack supply side constraints of the power sector to enable India access 24X7 power supply, especially all in its rural pockets,” Vishal Kapoor, director, the ministry of power at a conference on power transmission and distribution held by PHD Chamber of Commerce.

He added that the sole objective of the measure is to make sure that India and its rural areas are fed with uninterrupted power supply. “The focus is to not only satisfy the power consumers with quality power, but it is also aimed at bringing the discoms out of the severe crisis they are facing in terms of financial health,” he said.

This would involve intense interactions of the central government with all states, union territories and other stakeholders on the issue of transformers and sub-stations, among others while keeping in mind the existing technologies.

Talking of distribution reforms, power ministry officials said the condition and health of power distribution utilities have begun to improve significantly since its take off a year ago. “Even the plant load factor of state-owned power generating utilities underwent a sea change with their improved efficiencies as a result of which the power tariff per unit came down by 40 paisa,” said the official.

When power gets a shot in the arm

• After generation & transmission, first-ever long-term distribution perspective plan drafted by the Central Electricity Authority

• Report to collate the infrastructure and the investment required — both discom-wise and year-wise, till 2021-22

• Report to be out in the next four months

• To complement the efforts being made by the states under Ujwal Discom Assurance Yojana