Discoms in Odisha spend Rs 550 cr on Capex

The capex aims at pruning high AT&C losses

Distribution companies (discoms) in the state have spent Rs 550 crore on Capital expenditure (Capex) programme aimed at pruning high AT&C (aggregate technical & commercial) losses.

The first phase of Capex which is expected to be completed by this fiscal end, would see expenditure of Rs 970 crore as per the detailed project report (DPR) prepared for the scheme.

Of the four discoms operating in the state, Central Electricity Supply Utility of Odisha Ltd (Cesu) has incurred the highest expenditure at Rs 246 crore. Similarly, 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) have spent Rs 120 crore, Rs 107 crore and Rs 77 crore respectively.

As part of the Capex programme, discoms have installed 173 number of 33/11 KV sub-stations. Work is in progress for 21 new sub-stations. These 33/11 KV sub-stations would be set up at Khurda, Puri, Nayagarh, Cuttack, Dhenkanal, Kendrapara, Angul, Jagatsinghpur, Balasore, Bhadrak, Jharsuguda, Ganjam, Puri and Rayagada.

The Capex programme also involved laying of 2,684 km of 33 KV new lines, 5,701 km of 11 KV lines and 7282 km network of aerial bunched cables.

The project was conceptualised in 2010-11 with an outlay of Rs 2,400 crore. It was undertaken with an objective to cut AT&C loss by three per cent each year. Presently, the average AT&C loss of the four discoms stands at 38.18 per cent and it is targeted to bring down the loss to 26 per cent by 2019. One per cent reduction of AT&C loss is expected to earn revenues of Rs 80 crore per annum.

The second phase of Capex is now redundant with the introduction of new schemes like Deendayal Upadhaya Gram Jyoti Yojana (DDUGJY), Integrated Power Development Scheme (IPDS) and Odisha Distribution System Strengthening Project (ODSSP).

The outlay under DDUGJY for Odisha has been pegged at Rs 4,500 crore in two phases. Phase I of this scheme was approved by Rural Electrification Corporation (REC). The cost of IPDS has been assessed at Rs 4,200 crore.

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