Discoms begin implementation of capex programme

The four distribution companies operating in the state- Central Electricity Supply Utility of Odisha Ltd (Cesu), North-Eastern Electricity Supply Company of Odisha (Nesco), Southern Electricity Supply Company of Odisha (Southco) and Western Electricity Supply Company of Odisha (Wesco) have begun implementation of the ambitious capital expenditure (Capex) programme.

The Capex programme with an outlay of Rs 2400 crore is aimed at reducing high AT&C (aggregate technical and commercial) loss in the state which currently stands at 39 per cent.

"Discoms are through with the process of material procurement for the Capex programme and have started execution of the scheme. An outlay of Rs 205 crore was earmarked by the state government for the scheme in 2010-11 and Rs 215 crore in 2011-12 whileRs 291 crore has been set aside for 2012-13”, a senior energy department official told Business Standard.

 

Out of the total expenditure of Rs 2400 crore, the state government will provide Rs 1200 crore while the four discoms will mobilize the remaining Rs 1200 crore.

Of the financial assistance of Rs 1200 crore to be provided by the state government, Rs 500 crore would come from the 13th Finance Commission which is to be passed on to the discoms with zero per cent interest.

The Capex scheme was announced by the state government in November 2010, aiming at reducing combined AT&C loss of 12 per cent by the four discoms over a period of four years.

One per cent reduction of AT&C loss will result in Rs 60 crore revenue generation per annum.