Power Finance Corporation (PFC) has released Rs 79.21 crore for implementation of the Restructured Accelerated Power Development and Reform Programme (R-APDRP) in Odisha.
The amount has been released and credited in the designated R-APDRP account of the state energy department.
“Funds amounting to Rs 31.69 crore, Rs 39.55 crore and Rs 7.97 crore have been released under Part-A, Part-B and Part-A SCADA (supervisory control and data acquisition) of the R-APDRP scheme respectively being implemented in Cesu area. As the R-APDRP beneficiary account is being maintained by you, kindly comply and report to this department for further action”, S J Nayak, joint secretary (energy), Odisha wrote to chief executive officer, Cesu.
The disbursement of funds under R-APDRP fulfills a long-standing demand of the Odisha government which has been clamouring for the assistance all these years. But since the electricity distribution business was privatised in the state, the distribution companies (discoms) could not avail the funds.
However, the Central Electricity Supply Utility of Odisha (Cesu) was made an exception since the utility is currently managed by state power regulator Odisha Electricity Regulatory Commission (OERC).
But the Union power ministry had stipulated a condition that the money provided under R-APDRP will be routed through the state government.
The funds released by PFC will be used in operational areas of Cesu covering Bhubaneswar, Cuttack, Dhenkanal, Angul, Puri, Jagatsinghpur, Kendrapara, Khurda, Jatni, Paradeep, Pattamundai and Talcher.
R-APDRP is aimed at upgrading the sub-transmission and distribution network, including energy accounting and metering in the urban areas having population of more than 30,000.
The state government has identified 12 such towns that meet the criteria. The funding for all these towns has been estimated at Rs 410 crore. This includes Rs 190 crore receivable fund from the Centre and the residual Rs 220 crore to be raised by Cesu as counterpart funding.
In November 2012, the state government had given its consent to receive funds under R-APDRP, channelizing them to distribution sector in Cesu area as per requirement of the scheme, undertaking responsibility of fulfilling the conditions prescribed in the scheme and accepting the obligation of the repayment of the loans.
Implementation of the R-APDRP scheme is expected to trim the steep aggregate technical & commercial (AT&C) losses in Odisha.
While many states had been able to contain their high AT&C losses at 25 per cent by availing assistance under R-APDRP, Odisha is still reeling under an AT&C loss of 39 per cent.
As part of the reforms process, the Odisha government had unbundled the erstwhile Odisha State Electricity Board (OSEB) by structural separation and corporatisation of generation, transmission and distribution.
Fifty one per cent of OSEB's shares were transferred to four distribution companies- Cesu, 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).
