The Central Electricity Supply Utility (CESU) which is in charge of power distribution in nine districts of central part of Orissa, is exploring various options to finance its 5 years business plan. The plan starting from 2008-09 to 2012-13, envisages an investment of Rs 1219 crore over this period.
This options include seeking funds from the state government, Centre and availing loans from the financial institutions among others. It has already initiated discussion with some financial institutions in this regard and hopes to get about Rs 110 crore from them, Swapan Kumar Dasgupta, the chief executive officer (CEO), CESU said.
Addressing the media, he said, as part of the 5 years business plan (2008-09 to 2012-13), the company has already spent Rs 75 crore during the last fiscal for capacity expansion and loss reduction. Subject to availability of funding the utility intends to spent Rs 1219 crore by the end of 2012-13.
This expenditure includes Rs 562 crore investment for capacity expansion and Rs 657 crore for loss reduction. Post-investment, the transmission and distribution (T&D) loss is projected to decline to 20 percent by 2012-13 from about 40 percent at present.
On outstanding arrears, the CEO said, though the book of accounts of CESU puts the outstanding dues at Rs 1200 crore, the actual receivables could be lower. So the utility has started receivable audit in 8 districts to ascertain the exact amount and the process for all the 9 districts will be completed soon. This will give the true picture of the outstanding dues of CESU, Dasgupta added.
With the cumulative loss of the company reaching Rs 900 crore by March 2009, the utility has announced a One Time Settlement (OTS) scheme for collection of arrears from consumers and improve the cash flow position. Under the scheme, the consumers can settle their old arrears at one go with up to 40 percent discount or in maximum of three installments.
Similarly, early bird incentive of 2 percent will be available if the arrears are settled by the end of this month. The utility will also publish the name of large defaulters in the near future and a special disconnection drive will be launched after the OTS scheme is closed.
Dasgupta said, rural electrification, arranging funds for capital expenditure, strengthening the complaint redressal mechanism and reducing transmission and distribution loss will continue to be challenges for the company. Admitting that the desired reduction in the T&D loss could not be achieved during the last fiscal, he said, the utility requires some fund badly to reduce the technical loss.
However, there has been marked improvement in the collection efficiency with the per month collection reaching Rs 90 crore from about Rs 70 crore per month a year ago. Efforts are being made to make CESU an efficient and consumer friendly organisation, he added. Bibhu Prasad Mohapatra, chief finance officer (CFO), R N Mohanty, chief operating officer (COO) and K V Durgaprasad, the chief commercial officer were present on the occasion.
