Inside Pages9Final.indd - Ministry of Power

Chapter - 6
MINISTRY OF POWER
DISTRIBUTION REFORMS & ACCELERATED POWER
DEVELOPMENT AND REFORMS PROGRAMME (APDRP)
Distribution Reforms: Considering the increasing
commercial losses of the state power utilities, the
Government of India identified Distribution Reform as the
key area to bring about the efficiency and commercial
viability into the power sector. Ministry of Power launched
reform oriented programme namely Accelerate Power
Development and Reforms Programme (APDRP) during
2002-2003. Ministry of Power signed the Memorandum
of Understanding with the states to undertake distribution
reforms in a time bound manner, which includes setting
up of State Electricity Regulatory Commision (SERC),
unbundling of State Power Utilities, metering of feeders
& consumers, starting energy accounting & auditing,
securitisation of outstanding dues of CPSUs, grid
discipline etc. subsequently, 24 states have constituted
SERCs and 20 have issued tarriff orders in the direction
of rationalizing the tariffs. States are now better committed
towards subsidy payment to the utilities. All the States
have securitised. Their outstanding dues towards CPSUs.
13 States have unbundled/corporatised their respective
power utilities. Electricity Distribution has been privalized
in Orrisa & Delhi.
Progress on metering in the distribution sector is as
shown:
Metering Status
%age
ACCLERATED POWER DEVELOPMENT AND REFORMS
PROGRAMME
The Govt. of India approved Accelerated Power
Development and Reforms Programme (APDRP) in March
2003 with a focus on distribution reforms with the following
objectives:
• Reduce AT&C losses
• Bring about commerical viability in the power sector
• Reduce outages & interruptions
• Increase consumer satisfaction
The programme has an outlay of Rs. 40,000 Crore as
additional central plan asistance to State Governments during
Tenth five-year plan. The programme has two components
Investment Component
Additional Central Plan Assistance is provided by the
Government to the states for undertaking projects for
strengthering and up gradation of Sub Transmission and
Distribution network for reduction in technical and and
commercial losses and feeder outages and better reliability
& increased customer satisfaction and to bring commercial
vaibility to the power sector. The focus is on high-density
networks i.e. urban centres, where investment could lead
to substantial, quick & demonstrable results.
25% of the project cost is provided as Additional Central
Plan Assistance in the form of grant to the state utilities. To
begin with, the Government also provided loan to the tune
of 25% of the project cost. However, in accordance with
the recommendations of 12th Finance Commision, the
loan component has been discontinued from the current
financial year. Now utilities have to arrange remaining 75%
of the project cost from Financial Institutions like PFC/REC
or their internal resources, in comparision to 50% earlier.
Special category states (All North Eastern states, J&K, H.P.,
Uttaranchal and Sikkim) are entitled for 90% assistance in
the form of grant and have to arrange balance 10%. Funds
are released by Ministry of Finance, Government of India
under the advice form Ministry of Power.
The investment component has an expected outlay of Rs.
20,000 Crore during Tenth Plan.
The status as on 30th November 2005.
Number of Projects sanctioned 583 Nos.
Cost of projects sanctioned Rs. 19182.33 Cr.
Funds released Rs. 5872.32 Cr.
Counter - Part funds tied up Rs. 6870.41Cr.
Counter-Part funds drawn Rs. 3700.27 Cr.
Funds Utilized Rs. 8550.52 Cr.
Incentive Component :
The incentive component has been introduced to motivate
the SEBs/Utilities to reduce their cash losses. Funds are
provided to SEBs/utilities for actual cash loss reduction by
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