MP govt seeks Rs 8,900 cr loan from ADB, WB

To ensure power supply in the state’s rural areas, the Madhya Pradesh government has sought a loan of Rs 8,900 crore from the Asian Development Bank and World Bank. The loan amount will also be utilised in reduction of electric distribution system losses, improved reliability of power, increased system capacity and improved customer connectivity.

The state government has already initiated a project to separate power feeders for agriculture and rural domestic areas, so that technical and commercial losses of power can be reduced and power can be supplied at ultra-high voltage.

“Three power distribution companies of the state, MP Madhya Kshetra Vidyut Vitran Company, Purva Kshetra Vidyut Vitran Company and Paschim Kshetra Vidyut Vitran Company have demanded three loans of Rs 3,000 crore, Rs 3,500 crore and Rs 2,400 crore respectively for the purpose,” said a government source.

The state government had earmarked Rs 100 crore for the purpose during the financial year 2008-09 and another amount of Rs 8 crore has been allocated in budget 2009-10.

“So far 273 feeders have been separated by March 2009 and the government has a plan to segregate feeders at tehsil level. This would also arrest the rise in power pilferage cases,” the source added.

The power distribution losses are as high as 50 per cent in Madhya Pradesh, while the cases of power pilferage and use of subsidised power supply for domestic use is common in rural areas, paucity of fund is a concern for the state government.