‘Trim distribution losses to make power sector viable’

February 19th, 2008 - 8:19 pm ICT by admin  

New Delhi, Feb 19 (IANS) Distribution losses must be brought down to 15 percent from the current 34 percent if the power sector is to become viable, said Power Minister Sushilkumar Shinde Tuesday. “While capacity addition will increase generation, the power sector cannot become sustainable unless we also address distribution losses,” Shinde said, addressing a conference of state chief secretaries on power sector issues.

He said such losses in India were still very high compared to the internationally acceptable level of 15 percent.

“Going by international experience, aggregated transmission and commercial (AT&C or distribution) losses should be around 15 percent but in some states, AT&C losses exceed 65 percent.

“A rapid and drastic reduction in AT&C losses is necessary for turning around the power sector.

“This can be achieved through better governance and administrative practices, restructuring of utilities to make them more focused, deployment of better manpower and use of better technology.”

On power generation capacity addition, Shinde asked the states to complete the process of awarding contracts for their 11th five-year plan (2007-12) power projects by March this year, so that they could be commissioned on schedule.

He also asked the states to be more proactive in implementing the Rajive Gandhi Grameen Vidyutikaran Yojana, a central government-sponsored scheme aimed at strengthening rural power distribution network.

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