In a bid to revamp the state's power distribution network, the Maharashtra State Electricity Distribution Company (MSEDCL) has prepared a Rs 12,500 crore plan to be implemented over the next five years. The company has also reached tie-ups arrangements with the state's power generation arm Mahagenco to buy 10,000 MW power to rid Maharashtra of the planned load shedding over the same five-year period. The plan envisages, among other improvements, setting up of additional sub-stations, erection of transformers, installing additional distribution lines and augmenting the existing structures, Sanjay Bhatia, managing director of MSEDCL, said. The company has recently completed the demand management exercise for the entire state, which forms the basis of the network revamp plan. "All the 550 sub-stations in the state have studied the demand pattern for their areas according to the development taking place there and we are now ready to go ahead with the implementation," Bhatia said.The broad outline for the plan is five years, but a detailed project report has been prepared for the first three years...the bidding process for the project will commence soon. "We will invite tenders from parties to work as project management consultants for the plan on a turnkey basis and also appoint external quality assurance consultants to supervise the work quality," Bhatia said.The project outlay will be Rs 7,500 crore and MSEDCL has signed memorandum of association with Power Finance Corporation and Rural Electricification Corporation for a long-term, soft loan of Rs 7,000 crore. PFC will extend Rs 2.000 crore out of this whereas REC will offer the larger chunk...the arrangement would be adequate for the three year first phase of the plan. About Rs 1,000 crore of this project investment will be in Pune city and zone, Bhatia said.Distribution losses in the state have been declining and the percentage of these losses has come down from 32 to 29 last year and to 26 this year. "With the revitalised distribution network this will reduce further," Bhatia said.MSEDCL has estimated the power deficit for the state will rise to 10,000 MW over the five years and has looked at capacity addition and demand management to deal with this deficit. Mahagenco has planned 18,000 MW capacity addition and we will be ready with the network, Bhatia said.Allaying fears that additional power availability may come at a higher cost, Bhatia said the power tarrifs will in fact reduce, as all the additional generation is by state-based units. "We expect this power would be generated at Rs 2.5 per unit," Bhatia said.
