Govt clears Rs 17,033 cr for power reforms

CABINET DECIDES

The Cabinet Committee on Economic Affairs (CCEA) has approved Rs 17,033 crore for revamping the Accelerated Power Development and Reforms Programme (APDRP), aimed at cutting commercial and other losses of state utilities.

“Out of the Rs 17,033 crore, the grant component is Rs 6,445 crore and the loan component is Rs 2,274 crore,” Finance Minister P Chidambaram told reporters after the CCEA meeting. He added that loans under the APDRP would be given to utilities only under specific conditions.

The government has mandated that utilities will have to bring down aggregate technical and commercial (AT&C) losses in and around a project to below 15 per cent, whereas in the utility area, which is a larger area, they will have to bring the losses down by 3 per cent or 1.5 per cent depending on the location.

If the utilities achieve these parameters, 50 per cent of loans they take will be converted into grants.

The scheme also seeks to bring commercial viability in the power sector and reduce outages and interruptions. Under the scheme, the government provides 50 per cent central assistance for strengthening and upgrading sub-transmission and distribution network.

According to the power ministry, overall AT&C losses are around 35 per cent against about 39 per cent in 2001-02.

For the sanctioning of projects and monitoring the implementation of the revised scheme, a steering committee has been constituted under the power secretary.

Power Finance Corporation has been identified as the nodal agency to operationalise the revised programme of the scheme.

OTHER CABINET DECISIONS

 

Extension of tenure of the Commission for Economically Backward Classes (EBCs) and to work out modalities so as to give effect to the measures not covered by the existing reservation policy

 

Modification to centrally-sponsored Accelerated Rural Water Supply Programme, meant for ensuring drinking water supply in rural areas.

 

Amendment to the Payment of Gratuity Act, 1972, which will result in coverage of teachers in educational institutions under the Act, with effect from April 3, 1997.

 

Introduction of pension scheme for employees of Navodaya Vidyalaya Samiti

 

Signing of agreements on exemption from visa requirement for the holders of diplomatic and service passports between the Indian government and the governments of the Republic of El-Salvador, Republic of Honduras and Republic of Nicaragua