Power norms being tightened for states

The Centre is strengthening the Accelerated Power Development and Reform Programme (APDRP) and increasing the number of parameters on which states are monitored from 15 to 29. The number of parameters are proposed to be raised further to 40 by the end of next month.

The parameters included are setting up of computerised billing centres, outsourcing activities like meter-reading, energy accounting, energy audits, turnkey contracting and establishment of customer care centres, power ministry officials said.

State Electricity Boards (SEBs) will be rated according to the new APDRP criteria and the Crisil rating of State Electricity Boards (SEBs) will be matched to the APDRP rating, they added.

Regional review meetings, starting this week, will look into how states have reformed the power sector.

The attempt is to collate best practices in a state and share them with other states, said officials. The emphasis will be on power demand and capacity addition programmes.

States have to plan to meet at least two-thirds of their power supply. The balance can be provided by Central utilities like National Thermal Power Corporation.

States also need to plan transmission capacities. This requires transmission networks approved by regulators with multi-year tariffs to be in place, said officials in the power ministry.

The APDRP was introduced in 2003 with the aim of accelerating distribution sector reforms. It aims to bring about commercial viability in the power sector, reduce outages and interruptions and increase consumer satisfaction.

The scheme has two components "" the investment component and the incentive component. Under the former, additional central assistance of 50 per cent of the project cost is provided for strengthening and upgradation of sub-transmission and distribution networks.

The balance has to be provided by SEBs and utilities from the Power Finance Corporation, Rural Electrification Corporation, other financial institutions or from their own resources as counter-part funds. Release of funds is linked to measurable targets.

The performance criteria includes putting in place a regulatory framework, restructuring of SEBs, reduction in transmission and distribution losses, curtailing revenue arrears, plant load factor, manpower reduction and reduction of cash losses.

Under the incentive component, an incentive equivalent to 50 per cent of the actual cash loss reduction by SEBs/Utilities is provided as grant. 2000-01 is the base year for calculation of loss reduction in the subsequent years.