Andhra ranks first in power sector reforms: Crisil

The credibility of reform process in the Andhra Pradesh power sector received a major boost with the Union power ministry giving the state the top most rating.

The performance ratings, carried out by Icra and Crisil on behalf of the power ministry, is based on the combined performance of the state government, State Regulatory Commission and operational/commercial and financial performance of the generation, transmission and distribution companies in the state.

In its 100-page report titled 'Power Sector Ratings 2004-05', Crisil revealed that Andhra Pradesh is the only state in the country that scored a distinction with 57.03 per cent.

Crisil further observed that due to improvements in installed capacity, length of transmission lines and sub-stations, transformers and other infrastructure facilities, the number of consumers and services, metered sales and revenue realisation have almost doubled in the state. Besides, transmission and distribution (T&D) losses have come down substantially from 30 per cent to 23.6 per cent.

Commenting on the ratings, Rachel Chatterjee, chairman and managing director of APTransco, said, "The rating will enable the power sector in the state to implement power reforms with a renewed vigour."

The revenues of power utilities have increased from Rs 4,500 crore (before reforms) to more than Rs 10,000 crore by 2004-05 and the installed capacity touched more than 11,100 mw as compared to 7,341 mw during 1999-2000.

Despite implementing the policy of free power to the farmers, Andhra Pradesh has successfully reduced the HT tariff by 4 per cent to promote industrialisation and employment generation, the report said.

"In 2004-05, APTransco spent Rs 1,600 crore on strengthening the T&D network in the state. It is planning to spend more than Rs 2,000 crore to further strengthen it. Another Rs 5,000 crore is being planned for the implementation of high voltage distribution scheme to cut down the losses and to ensure power supply without any voltage fluctuations in rural areas," she said.