Plan Panel raps power ministry on losses

States that do not spend their funds allocated for power generation capacity expansion may come in for flak at the time of their annual plan review by the Planning Commission.

The Plan Panel has asked the power ministry to bring down the aggregate technical and commercial (AT&C) losses from the present 40 per cent to 25 per cent by the end of the 11th Plan (2007-2012).

"The AT&C losses in the power sector shall be brought down from 40 per cent to 25 per cent by the end of the 11th plan," Deputy Chairman of the Planning Commission Montek Singh Ahluwalia said at a conference with power and energy secretaries of states and power utilities.

The power ministry will ask Prime Minister Manmohan Singh to review the annual funds given to states for power generation, particularly to those states that have not added additional capacity in the last few years. Power Minister Sushilkumar Shinde announced this at the conference.

Such a move will help the states in using funds earmarked for generation exclusively, for adding generation capacity. AT&C losses in some states are as high as 70 per cent.