Loan writeoffs if power discoms reduce T&D losses, says minister

If power distribution companies reduce their transmission and distribution losses by 15 per cent, half their loans would be converted to a subsidy, said Union Minister of State for Power, Bharatsinh Solanki.

For this, the discoms have to show baseline data, including IT applications, and auditing and accounting details validated by a third-party, he said. The ministry is of the view that involving franchisees would help reduce losses and generate revenues.

Speaking on the sidelines of the silver jubilee celebrations of Power Grid Corporation of India’s substation here today, Solanki said the programme was already being implemented in Uttar Pradesh and Gujarat.

This is an effort to ensure supply of quality electricity with proper billing, he said. The government was initiating a National Energy Efficiency programme to bridge the demand-supply gap.

Citing the 17th Electric Power Survey, he said energy requirement and peak demand by 2022 would be 1,900 billion units and 300 Gw. Power Grid would raise Rs 5,000 crore by issuing bonds in the markets. The first set of bonds would be issued in a couple of months and the second by the end of this financial year, said S K Chaturvedi, chairman and managing director.

The company has already commissioned its Afghanistan unit. It is now undertaking projects in Dubai and Nigeria. “We will sign a memorandum of understanding with the Sri Lankan government to lay an underground sealink between both the countries,’’ he said.