GOVERNMENT OF INDIA

MINISTRY OF POWER

LOK SABHA

UNSTARRED QUESTION NO: 5854

ANSWERED ON:30.04.2010

REPORT ON TRANSMISSION AND DISTRIBUTION LOSSES

(a) whether the Thirteenth Finance Commission has given its Report regarding the losses in the process of transmission and distribution of power in the country;

(b) if so, the details thereof;

(c) whether the loss assessed for the current year amounts to Rs.68,643 crore which is likely to increase to Rs.1,16,089 crore by the year 2014-15;

(d) if so, whether the Government has fixed any time frame to check the said losses; and

(e) if so, the details thereof?

ANSWER

 THE MINISTER OF STATE IN THE MINISTRY OF POWER(SHRI BHARATSINH SOLANKI)

(a) & (b): Yes, Madam. As per the Report of Thirteenth Finance Commission, the losses incurred in the process of Transmission and Distribution of power in the country by the State T&D Power Utilities are as under:

 (Rs. In crores) 2005-06 2006-07 2007-08 2008-09

Financial loss 6634 13398 9985 9206

Subsidy 11741 13277 16950 18111

Total 18375 26675 26935 27317

 (c) : Yes, Madam. As per the Report of Thirteenth Finance Commission, projected losses of State T&D Utilities at 2008 tariff is likely to increase from Rs.68,643 crores in 2010-11 to Rs.1,16,089 crore by the year 2014-15.

(d) & (e): The primary responsibility to curtail Aggregate Technical & Commercial losses lies with State Government/ Utilities. As such, no time frame has been fixed by the Central Government. However, Government of India has providing assistance to the State/Utilities to curtail the losses in distribution through the implementation of R-APDRP. Government of India has launched Restructured Accelerated Power Development and Reform Programme(R- APDRP) in July 2008 as a central sector scheme for XI Plan aimed at turnaround of power distribution sector. The scheme comprises of two parts-Part-A & Part-B. Part-A of the scheme being dedicated to establishment of IT enabled system for achieving reliable & verifiable baseline data system in all towns with population greater than 30,000 as per 2001 census (10,000 for Special Category States) Installation of SCADA/DMS for towns with population greater than 4 lakhs & annual input energy greater than 350MU is also envisaged under Part-A. 100% loan is provided under RAPDRP for Part-A projects & shall be converted to grant on completion and verification of same by Third Party Independent Evaluating Agencies (TPIEA) appointed by MOP/PFC. MOP, GOI has earmarked Rs.10,000 Crores for R-APDRP Part-A. Part-B deals with regular Sub Transmission & Distribution system strengthening & upgradation projects. The focus for Part-B shall be loss reduction on sustainable basis. 25% loan is provided under Part-B projects and upto 50% of scheme cost is convertible to grant depending on extent of maintaining AT&C loss level at 15% level for five years. For special category states, 90% loan is provided by GOI for Part-B projects and entire GOI loan shall be converted to grant in five tranches depending on extent of maintaining AT&C loss level at 15% level for five years. It is expected that on successful completion of the scheme, the AT&C losses will be reduced to the extent of 15% in the project areas