System To Monitor Power Sector Activities Shortly

Emphasising the urgent need to reduce transmission and distribution (T&D) losses suffered by state electricity boards across India, pegged at Rs 26,000 crore annually, World Bank country director Edwin Lim said this figure was double the amount spent on health and three times of what was spent on water supply in India.

Addressing the international conference on distribution reforms organised by the Federation of Indian Chamber of Commerce and Industry (FICCI) here, he said: "If the power sector financial losses were reduced by only a third, the savings from a single year would be sufficient to fill every teacher vacancy in the country and provide every school with running water and toilet facilities."

Inaugurating the conference, Union power minister Suresh Prabhu said Delhi and Goa and the Union Territories of Pondicherry and Chandigarh will be helped to become model states for power reforms.

Prabhu said these states and Union Territories have been chosen due to their small size, which would make it easier for the implementation of measures needed for reforms.

Prabhu said a management information system (MIS) was being developed with the co-operation of the Central Electricity Authority (CEA) and the ministry of information technology to monitor the working of the power system throughout the country. "This system will be on-line and real time.

In addition, administrative and managerial changes which will bring in accountability are also being contemplated. These measures would have to be implemented by state governments if they are to become eligible for support from the Centre," he said.

He emphasised the need to revamp infrastructure, administration and management systems before tariff rationalisation occurs in the states.

On the MoUs being signed with various states, Prabhu said this process was almost complete and the performance of the signatory states was being monitored on a monthly basis.

Prabhu said he had held discussions with major political parties and met all their leaders. "By and large, the political class is in favour of reforms in the power sector. A common minimum declaration on power reforms is almost ready. A country-wide awareness campaign was launched from October 15 and will continue till November 30 to educate the people on the urgent need for power reforms," he said.

Summing up his ministry's approach to reforms, Prabhu said the focus is now on distribution and a hands-on approach at the micro level right down to the distribution feeder which will become accountable. He said support would only be given to "acting States" and not to "thinking states".