Grappling with a steep aggregate technical & commercial (AT&C) loss touching 40 per cent, Odisha now faces a formidable challenge to curtail it to 30.5 per cent by the end of 2017-18 and scale it down further to 20.5 per cent by 2021-22.
The Union power ministry has finalised AT&C loss trajectory for all states. The roadmap has set target for progressive decline in the loss that is hurting operations of distribution companies (discoms), eroding their margins.
For Odisha, the ministry has pegged AT&C loss target at 37 per cent by the end of this fiscal and subsequently scaling down the loss level at 20.5 per cent by 2012-22. The roadmap envisages bringing down AT&C loss by 1.5-2 per cent every fiscal.
As per the AT&C trajectory, Central Electricity Supply Utility of Odisha Ltd (Cesu), a discom currently managed by state power regulator Odisha Electricity Regulatory Commission (OERC), has to prune its AT&C loss from 39.55 per cent to 20.82 per cent by 2021-22. For Cesu, achieving the targeted reduction in AT&C loss seems comfortable after Power Finance Corporation (PFC) recently released Rs 79.21 crore for implementation of the Restructured Accelerated Power Development and Reform Programme (R-APDRP). The funds released by PFC will be used in the operational areas of Cesu covering Bhubaneswar, Cuttack, Dhenkanal, Angul, Puri, Jagatsinghpur, Kendrapara, Khurda, Jatni, Paradeep, Pattamundai and Talcher.
But the three other Reliance Infrastructure controlled discoms - North Eastern Electricity Supply Company of Odisha Ltd (Nesco), Western Electricity Supply Company of Odisha Ltd (Wesco) and Southern Electricity Supply Company of Odisha Ltd (Southco) are likely to find the going tough. Being controlled by a private entity, these discoms are not eligible to receive funding support under R-APDRP. The state government's own ambitious Rs 2,400 crore capital expenditure (capex) scheme aimed at slashing AT&C losses is on a slow lane with Nesco, Wesco and Southco struggling to arrange counterpart funding. Out of Rs 2,400 crore needed for the scheme, the state government is offering a financial assistance of Rs 1,200 crore. The rest Rs 1,200 crore is to be mobilised by the discoms.
The Capex programme aimed at reducing AT&C loss by three per cent each year. One per cent reduction of AT&C loss will contribute Rs 60 crore per annum to the state government.
Due to non-reduction in AT&C losses, the losses of discoms kept mounting year on year because of which they were unable to pay the monthly dues of state owned bulk power purchaser Gridco.
