OST Business Bureau
Bhubaneswar, Sep 21:
The Odisha government has constituted a 10-member steering committee, which will give necessary guidance for speedy and effective implementation of the Restructured Accelerated Power Development and Reform Programme (R-APDRP) scheme in the command area of distribution utility- Central Electricity Supply Utility of Odisha Ltd (Cesu).
The panel, to be headed by the chief secretary JK Mohapatra, would have development commissioner, secretaries of departments of finance, revenue & disaster management, energy and housing & urban development as members. Energy secretary will convene the meetings.
Besides, the chairman cum managing director of Odisha Thermal Power Corporation Ltd (OTPCL) and the chairman as well as chief executive officer and chief operating officer of Cesu will be the members of the steering committee.
Since the electricity distribution business was privatized in Odisha, the distribution companies (discoms) were bereft of any funding under the original APDRP scheme. But the Union power ministry considered the case of Cesu for financial assistance on the condition that the money will be routed through the state government.
A quadripartite agreement will be signed among the ministry, Power Finance Corporation (PFC), Odisha government and Cesu for release of funds. Initially, the Centre has agreed to include two operational areas of Cesu- Bhubaneswar and Cuttack – for funding.
R-APDRP aims 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 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 last year, the state government had given its consent to receive funds under R-APDRP, channelizing them to the 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.
OST Business Bureau