Aid to states to curb power losses

The power ministry has allocated over Rs 1,400 crore as part of efforts to encourage the states to curb transmission and distribution losses.

The ministry officials said there were no plans to disinvest the government stake in public-sector power companies.

The finance ministry has proposed a dilution of 5 per cent of the government equity in the Power Finance Corporation and the Power Grid Corporation of India Ltd during the current financial year through public offers. The ministry is pushing for a similar sale in the National Hydro-electric Power Corporation next year.

"We have sanctioned about Rs 1,437 crore for 99 projects to 14 states under the investment component of the Accelerated Power Development and Reform Programme (APDRP) scheme to motivate the states to reduce losses," said Power Minister PM Sayeed.

The Centre was persuading states like Uttar Pradesh, Bihar, Orissa and Jharkhand to improve, he said, adding UP had received the highest allocation of Rs 324 crore this fiscal. The states have, however, managed to utilise only Rs 9 crore so far.

Jammu and Kashmir has been allocated Rs 241.17 crore, Meghalaya Rs 139.64 crore, Manipur Rs 133.83 crore, Kerala Rs 123.91 crore and Tripura Rs 80.38 crore, according to power ministry statistics.

Other states, where projects have been sanctioned, include Bihar (Rs 63.44 crore), Goa (Rs 57.8 crore), Gujarat (Rs 75.46 crore), Maharashtra (Rs 38.17 crore), Punjab (Rs 34.8 crore), Karnataka (Rs 31.60 crore), Mizoram (Rs 53.37 crore) and Rajasthan (Rs 39.08 crore).

The APDRP seeks to reduce aggregate technical and commercial losses and has investment and incentive components, wherein the Centre allocates some money to the states.

On the Left's demand to review the Electricity Act, Sayeed said the Act had been reviewed and 13 states given extensions for unbundling their electricity boards. The government would look into other issues as and when required, he added.