Andhra power firm earns Rs 50cr additional revenue

Despite reduction in HT tariff rates, Eastern Power Distribution Company of Andhra Pradesh Limited (EPDCL), which supplies power to five coastal districts from Srikakulam to West Godavari, earned an additional revenue of Rs 50 crore during the first half of the current fiscal, compared with the last corresponding period.

In April 2006, EPDCL reduced power charges of HT consumers by 10 paise, 25 paise and 45 paise on each unit of power on 11 KV, 33KV and 132 KV line users respectively.

Yet, the revenue increased by Rs 50 crore during the first half because of effective revenue collection system and marginal increase in power consumption, Praveen Prakash, chairman and managing director, EPDCL, told Business Standard.

During April-September period in the current year, EPDCL collected Rs 1,091 crore, which is Rs 50 crore higher than that of the last corresponding period. More than 50 per cent of the revenue is from from 1,069 HT consumers alone.

To reduce technical losses in power distribution by two per cent, EPDCL is spending about Rs 100 crore.

"Through the Power Finance Corporation, the Japan Bank for International Cooperation has sanctioned a loan of Rs 100 crore to EPDCL. We are spending Rs 71.55 crore from this amount for setting up 50 new 33/11KV sub-stations and for augmenting the existing 46 sub-stations. The remaining loan amount would be spent during the next fiscal for improving quality of power supply," Prakesh said and expressed the confidence that EPDCL would substantially cut down power losses and save nearly 40 crore a year.

EPDCL is also planning to spend Rs 250 crore over the next three years for electrification of 1,900 habitations and sanction eight lack individual connections.

In addition to this, the company will spend Rs 27 crore for digitising utility position systems in towns of the five coastal districts. It is also taking steps to introduce for the first time in the state automatic remote metering system for industries, according to Prakash.