States asked to cut T&D losses, but deadlines extended

State power utilities, which are reeling under acute financial crisis, would have to strive to reduce transmission and distribution (T&D) losses to 14 per cent by the end of the 13th Plan.

The 18th Electric Power Survey committee chaired by the Central Electricity Authority has said all-India T&D losses are proposed to be brought down from 24.15 per cent to 17.09 per cent by the end of the 12th Plan and further reduced to 14.17 per cent by the end of the 13th Plan.

State utilities had been earlier asked to reduce T&D losses to 15 per cent by the end of the 11th Plan but some of them had sought an extension as they were unable to carve out necessary funds to improve T&D infrastructure.

A committee headed by the CEA chairman, set up to prepare the final 18th Electric Power Survey (EPS), has received views from several states on the growth in power demand and consumption, increase in the per capita consumption of power at 1,000 units, reduction in T&D losses and rural electrification.

A CEA official, requesting anonymity, told Business Standard: “A draft 18th EPS said states having comparatively lower T&D losses are required to bring down the losses to around 14 per cent by the end of the 12th Plan, whereas states which are having comparatively higher losses are required to bring down their T&D losses upto 14 per cent by the end of the 13th Plan for which they are required to strengthen their T&D infrastructure in a phased manner. However, some of the states have expressed difficulties in adopting the T&D loss reduction programme.”

The Planning Commission had suggested that the programme for reduction of T&D losses by 14 per cent by 2016-17 or 2021-22 needs to be based on the financial health of state utilities.

The official said losses of power utilities have surged to Rs 67,000 crore by the end of 2010-11. The representative of Orissa suggested that the reduction of T&D losses to 15 per cent by 2021-22 was difficult to achieve and suggested it should be kept around 20 per cent. He suggested that the load factor may be increased to around 71 per cent by 2021-22.

The present state of T&D losses was discussed at the recent meeting between the power ministry and states chaired by Power Minister Sushilkumar Shinde.

The Tamil Nadu representative suggested that the reduction of T&D losses to 15 per cent by 2016-17 may not be possible and should be extended to 2021-22. However, the CEA official said T&D losses reduction programme for the state would be kept as per the target given by the Tamil Nadu Electricity Regulatory Commission.

West Bengal has clarified that T&D losses for 2009-10 were around 23 per cent and the programme may be reviewed accordingly. A representative from Haryana said the projection of reduction of T&D losses should be realistic which may also take into account state-specific issues like law & order problem and other factors. He said stringent measure needs to be adopted to achieve the T&D losses programme.

UP said T&D loss reduction programme was on a higher side and should be realistic. The state said representative said projected load factor should also be reduced. He further mentioned that the projections should take into account capacity addition programme of UP. He said consumption in the industrial category was on the lower side and needs to be revised.

Rajasthan also expressed its inability to bring down loses to 14 per cent by 2021-22 on the grounds that it would require huge investment which would not be possible looking at the financial condition of the sector. Maharashtra, Madhya Pradesh, Himachal Pradesh, Punjab and Assam accepted the projections in the draft 18th EPS.