The Centre has worked out a state-specific policy for electricity boards and power distribution utilities that focuses on lowering transmission losses and bridging the gap between the cost of supply and realisation.
Union Power Secretary P K Pujari, however, ruled out any financial package on the lines of the one provided in 2012 for the revival of ailing electricity boards and power distribution utilities. He was speaking at a summit organised here today by the Indian Electrical and Electronics Manufacturers’ Association.
Pujari said a policy would soon be in place for the revival of electricity boards and distribution utilities. He hoped states would adopt the policy formulation. His announcement comes close on the heels of Goa, Uttarakhand and Meghalaya joining hands with the Centre for revival of power distribution.
“The proposed policy will require states to reduce transmission losses to a certain level in three years in order to improve quality and reliability of power. Besides, states will have to lower the average cost of supply to make operations viable,” Pujari noted.
Pujari said several states were moving towards private distribution franchises and that Rajasthan had recently floated a bid in this regard.
This apart, Pujari said the Centre would focus on implementation of the Integrated Power Development Scheme and the Deendayal Upadhyaya Gram Jyoti Yojana to improve electricity distribution.
Pujari said the Centre was working on allowing inefficient power plants to transfer coal linkages to efficient ones. He said the coal ministry had taken a number of initiatives to increase coal supply to power plants.