The distribution companies have not been able to upgrade the distribution infrastructure, resulting in high aggregate technical and commercial (AT&C) losses.
The Cabinet also gave its nod for installation of separate feeders for agriculture and fisheries sectors. The scheme envisages investment of Rs 1,000 crore to be spent in four years from 2013-14 to 2017-18.
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The new substations will help overcome the problem of low voltage and separate feeders for agriculture will ensure uninterrupted power for the farmers", said chief secretary J K Mohapatra.
Out of Rs 2,600 crore needed for installation of the new substations, Rs 200 crore has been set aside in the Budget for 2013-14.