This target has been set in the revised business plan of the distribution companies (distcos), which was accepted by the cabinet sub-committee headed by the energy minister SN Patra yesterday.
The high T & D loss is one of the major impediments in the way of success of power sector reforms and has also contributed to escalation of power tariff in the state. The T & D loss estimated at about 42 per cent.
The distcos have submitted the revised business plans in line with the direction of the state government and Orissa Electricity Regulatory commission (OERC). These documents were sought by the government enable it avail loans from Power Finance Corporation (PFC) and the World Bank.
Patra said, the plans will be submitted to the OERC after discussion with the World Bank officials in New Delhi soon. The World Bank had made submission of business plan and success of the reform process in the energy sector pre-condition for sanction of Rs 5,000 crore structural adjustment loan to the state government.
According to the plan finalized at the meeting, the interest on bonds of Rs 400 crore, which were issued by the distribution companies to Gridco and later were re-assigned by Gridco to the National Thermal Power Corporation (NTPC), will be serviced from the escrow account of the utilities.
The plan also discussed World Bank loan to the power sector, interest on the loan, the pending dues on the government department and public sector undertakings. The business plan has been prepared keeping in view operation performance efficiency, assumption of future tariff movement and restructuring of liabilities of distribution companies.
Among other, the meeting was attended by industry minister KV Singhdeo, minister of state for finance Panchanan Kanungo, chief secretary PK Mohanty, energy secretary RN Bohidar, finance secretary U Sarat Chandra and officials from Gridco and distocs.
