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Odisha readies road map to reduce AT & C losses to 20.5% by 2021-22

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Reported by Chinmaya Dehury
Bhubaneswar, Aug 29:

The Odisha government has charted a trajectory for reduction of aggregate technical & commercial (AT & C) losses of the four power distribution companies (discoms) in the state to 20.50 per cent by 2021-22.

power lines

The road map was finalised in a high level meeting chaired by additional secretary, Union Ministry of Power recently. The ministry has sought the consent of the state government to go ahead with the plan, said a senior officer of the Energy department.

While the AT & C loss currently stands at 39 per cent, it has been planned to slash it to 37 per cent in the current financial year. The trajectory aims to bring down the AT & C loss to 33 per cent by 2016-17, 30.50 per cent by 2017-18, 28 per cent by 2018-19, 25.50 per cent by 2019-20, 23 per cent by 2020-21 and 20.50 per cent by 2021-22.

The four discoms – Central Electricity Supply Utility of Odisha Ltd (Cesu), North Eastern Electricity Supply Company of Odisha Ltd (Nesco), Western Electricity Supply Company of Odisha Ltd (Wesco) and Southern Electricity Supply Company of Odisha Ltd (Southco) – are facing huge losses due to the high level of AT & C losses.

Due to non-reduction in AT & C losses, the losses of discoms have kept mounting year on year because of which they were unable to pay the monthly dues of state owned bulk power supplier Gridco. The discoms had to grapple with AT & C loss of Rs 278.83 crore for 2012-13 due to slow execution of Capex work.

The Capex programme is aimed at slashing AT & C losses of the four distribution companies. Funds to the tune of Rs 248.95 crore have been utilized so far under Capex. The Capex programme was conceptualised in 2010-11 with an outlay of Rs 2,400 crore.

Out of the total expenditure of Rs 2,400 crore, the state government was to provide Rs 1,200 crore while the four discoms would provide the rest.

Of the financial assistance of Rs 1,200 crore to be provided by the state government, Rs 500 crore would come from the 13th Finance Commission which is to be passed on to the discoms at zero per cent interest. The Capex programme is aimed at bringing down AT & C loss by 12 per cent during 2010-11 to 2013-14. One per cent reduction of AT & C loss will contribute Rs 60 crore per annum to the state government.

The government is also setting up more than 520 sub-stations to reduce the AT & C losses.