PM to launch NDA's pet power project in Varanasi

IPDS aims at the strengthening of sub-transmission and distribution in urban areas including 100% metering

Prime Minister Narendra Modi will launch one of the flagship projects by his government for the power sector — the Integrated Power Development Scheme (IPDS) from his parliamentary constituency of Varanasi — this Sunday.

IPDS aims at strengthening  sub-transmission and distribution in urban areas, including 100 per cent metering. The expected investment in this scheme is Rs 32,600 crore.

Announced in the maiden Budget of the National Democratic Alliance government last year, it will phase out the pet United Progressive Alliance  government schemes for revival of the power sector such as Restructured Accelerated Power Development and Reforms Programme (R-APDRP) and the financial restructuring package.

The Budget also introduced the Deendayal Upadhyaya Gram Jyoti Yojana in place of the Rajiv Gandhi Grameen Vidyutikaran Yojana of the earlier government.

The scheme will take its first steps in the town of Varanasi for which Rs 574 crore has been allotted. The sector’s key financier Power Finance Corporation will design the detailed project report (DPR). The state government would then, either bid the project or nominate agencies to execute the same as per the DPR, said senior government officials.

Varanasi is also in line to be made the first ‘smart city’ of the country. The project to improve its power supply situation could either go to Power Grid Corporation or would be open for private participation, opening doors for investment in the otherwise penniless Uttar Pradesh.

Chief  Minister Akhilesh Yadav in his state Budget this year, mentioned the goal of providing 22 hours power supply to urban areas and 16 hours in rural areas by next year. Minister of state for coal, power and renewable energy Piyush Goyal has, in earlier interactions said, the state support is needed to achieve the ‘24x7 Power for All’ aim of the NDA government.

UP might go to elections in 2017. Officials said the Chief Minister Akhilesh Yadav would receive the prime minister at the airport while the state’s energy minister Yasar Shah would share the dais with PM and Goyal at the launch of the scheme.

UP suffers from a peak power deficit of five to eight per cent, with power cuts running into hours and even days in the hinterlands. While there is enough captive power generation in the state, last mile connectivity, technical and commercial losses faced by the distribution companies and energy theft have crippled the state’s power sector.

IPDS aims to curb the losses and improve efficiency in the power system through technological improvements. The scheme would be executed through a special purpose vehicle (SPV) in which the state will have equal participation along with the central government and agencies - public and/or private - executing the scheme.

Power Reboot

• IPDS to be launched from PM Modi's constituency Varanasi, UP
• To be a smart city, Varanasi to witness overhaul of power transmission and distribution system
• UP CM Akhilesh Yadav to receive the PM
• State energy minister to co-launch scheme with union counterpart Piyush Goyal
• Rs 574 crore allotted to the state from centre's kitty
• PFC to design the DPR