States told to plug power losses, carry out reforms
DRAFT APPROACH PAPER TO 11TH PLAN
| It also seeks to bring down aggregate technical and commercial (AT&C) losses from the present 40 per cent to at least 20 per cent and upgrade thermal and hydel power stations to augment generating capacity. |
| "The greatest weakness in the power sector is on the distribution side, which is entirely the domain of states. AT&C losses of most state electricity boards remain high and have made SEBs financially sick and unable to invest adequately in generating capacity," the paper states. |
| The apex panel believes this is the reason behind the SEBs' limited success in attracting private investors to set up power plants. |
| The panel believes that the ambitious target of bringing the AT&C losses to 20 per cent by 2012 is only possible if the SEBs' management is professionalised and they are given autonomy devoid of political interference. |
| "The states need to undertake reforms in the power sector. They need to piggyback on the Electricity Act," a Planning Commission official said. |
| The paper has shed light on the abysmal performance of the Accelerated Power Development and Reforms Programme (APDRP) which has failed to bring down the AT&C losses to 15 per cent by the end of 2007, as was earlier aimed. However, the paper has completed the AT&C-loss reduction efforts in cities and small areas because of better management efforts. |
| It places emphasis on improving supply-side and demand-side efficiencies to effectively lower primary energy demands by 5-7 per cent during the Eleventh Plan, thus incentivising the rational use of energy, creating an efficient inter-state and intra-state transmission system of adequate capacity, an efficient distribution system, rehabilitation of low-plant load factor thermal stations and rehabilitation of hydro stations. |