Distribution companies (discoms) operating in Odisha have floated tenders of Rs 805.29 crore for implementing the capital expenditure (capex) programme aimed at slashing AT&C (aggregate technical and commercial) losses.
In a written reply to the state assembly, minister (energy) Arun Kumar Sahoo said work order of Rs 395.15 crore has been placed by the discoms.
"Materials are now being received and some of the turnkey projects have already been started. The proposed date of completion of this programme is March 2014,” he added.
Inadequate counterpart funding from three distribution companies (discoms) - North-Eastern Electricity Supply Company of Odisha ( Nesco), Southern Electricity Supply Company of Odisha (Southco) and Western Electricity Supply Company of Odisha (Wesco) has hit implementation of the Rs 2,400-crore ambitious capital expenditure (Capex) programme in Odisha.
Nesco, Wesco and Southco controlled by Reliance Energy have managed to arrange counterpart funding of around Rs 80 crore against requirement of Rs 120 crore for Capex implementation in the first phase that was to be completed by March 2013.
The other discom- Central Electricity Supply Utility of Odisha Ltd (Cesu), currently managed by power regulator- Odisha Electricity Regulatory Commission (OERC), has contributed its share of counterpart funding of Rs 78 crore for the first phase.
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The Capex programme was conceptualised in 2010-11 with an outlay of Rs 2400 crore.
Out of the total expenditure of Rs 2,400 crore, the state government will provide Rs 1,200 crore while the four discoms- 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) will mobilise the remaining Rs 1,200 crore.
Of the financial assistance of Rs 1,200 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.
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 while Rs 291 crore has been set aside for 2012-13.
The capex programme is aimed at bring down AT&C loss by 12% during 2010-11 to 2013-14. Currently, AT&C loss stands at 39%.
One per cent reduction of AT&C loss will contribute Rs 60 crore per annum to the state government.