The Planning Commission 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 exceed Rs 68,000 crore in 2010-11.
“We will set up an expert group to know the financial status of the distribution companies. The group will submit its report in the next six months,” Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters on the sidelines of the State Power Ministers Conference here.
“T&D losses in 2009-10 would exceed Rs 45,000 crore. Unless tariffs are raised, losses in 2010-11 would be about Rs 68,000 crore,” Ahluwalia said.
He added the Commission was trying to find out a former comptroller and accountant general to head the group. “Unless the distribution system becomes financially viable, generation and transmission would be in deep financial crisis. We would have to make distribution financially viable,” he said.
In the conference, Power Minister Sushilkumar Shinde said his ministry had already added 22,302-Mw new capacity in the first three years of the 11th Plan. This is more than the entire capacity addition during the five years of the 10th Plan.
Further, he said: “With close cooperation with and active support from state governments, we will definitely add the remaining 40,000-Mw capacity in the two years left in this Plan.
State governments’ support is crucial to address issues like law and order, land acquisition, rehabilitation and resettlement and environment clearances. These clearances need to be expedited and given in a time-bound manner to achieve the targets, Shinde added.
Although the capacity addition target for the 12th Plan is still to be finalised, the power ministry is tentatively planning 100,000 Mw. The work on projects of about 58,000-Mw capacity, likely to give benefits in the 12th Plan, has already started.
During 2009-10, 9,585 Mw of capacity has been added. This is the highest capacity addition achieved in a single year in the last six decades, the second highest being 9,263 Mw in 2007-08.
New scheme for rural electrification
The power ministry also launched a scheme for electrification of villages within 5 km of generation plants of Central public-sector undertakings to provide reliable and quality power to the people affected by the project. Besides electricity connections to BPL households will also be provided for free.
NTPC to set up 3 projects in Madhya Pradesh
State-run power major NTPC will invest about Rs 40,000 crore for setting up three coal-based projects in Madhya Pradesh. The company has selected sites at Bamitha, Gadarwara and Khargone in the state to set up three coal-fired power stations with a combined capacity of 7,960 Mw.
“Studies are on and the detailed project report and feasibility report will be complete in the next six months. Within a year, we can start working on these projects,” NTPC Chairman and Managing Director R S Sharma said.
