The Planning Commission today said it will soon set up an expert group to find out the causes of the huge transmission and distribution (T&D) losses which are expected to cross Rs 68,000 crore this fiscal.
"We would set up an expert group to know the financial status of the distribution companies," Planning Commission deputy chairman Montek Singh Ahluwalia told reporters on the sidelines of the State Power Ministers Conference here today. He further said he expects the expert group to submit its report in six months.
About the members of the group, Ahluwalia said, "we are trying to find out a former Comptroller and Accountant General to head the group. The other members would obviously be from the power sector."
Asked about power tariff hikes, he said, "in view of the huge T&D losses...If we would not increase power tariff... the state would become bank corrupt which would be visible after a few years. According to the 13th Finance Commission report, the T&D losses were about Rs 40,000 crore in 2009-10 which would swell to Rs 68,000 in the current fiscal if the tariff is not hiked from the 2008 levels."
"Unless the distribution system becomes financially viable, generation and transmission would be in deep financial crisis. We would have to make distribution financially viable," the Plan panel head added.
The government today said it has added 22,302mw capacity in the first three years of the 11th Plan.
