Untitled - Ministry of Power

Distribution Reforms & Accelerated Power
Development and Reforms Programme (APDRP)
Distribution Reforms: The Distribution Reform
was identified as the key area to bring about the
efficiency and improve the financial health of the
power sector. Ministry of Power took various
initiatives in the recent past for bringing
improvement in the distribution sector. 28 states
have signed the Memorandum of Understanding
with the Ministry to take various steps to
undertake distribution reforms in a time bound
manner. Subsequently, 21 states have constituted
SERCs and 17 have issued tariff orders in the
direction of rationalizing the tariffs. All States
are taking user charges in agriculture sector.
States are now better committed towards subsidy
payment to the utilities. All the states have
securitised their outstanding dues towards
CPSUs. 10 states have unbundled/corporatised
their SEBs. 4 States are expected to unbundle/
corporatise their SEBs shortly. Electricity
distribution has been privatized in Orissa and
Delhi. Energy handled by Government utilities,
private utilities and distribution companies in the
year 1996 and 2003 is shown below:
93%
54%
METERING STATUS
1996
2003
7%
11%
0%
35%
Private Discoms Govt. utilities
Chapter - 6
The SEBs/utilities have started finalizing their annual
accounts faster than earlier. Utilities in 11 states
have finalized their accounts for 2002-03. In the
balance 18 states, 7 utilities are Electricity
Departments and in the states of Bihar, Jharkhand,
Chattisgarh & M.P. utilities could not finalize their
accounts due to bifurcation of the states.
Progress on metering in the distribution sector is
as shown:
%age
100
80
60
40
20
0
METERING STATUS
94
81
77.6
Feeder Consumer
2000 2003
APDRP: Government of India approved a
scheme called “Accelerated Power Development
and Reforms Programme (APDRP)” in March
2003 to accelerate distribution sector reforms.
The main objectives of the programme are:
q Reduce AT&C losses to 15%
q Bring about commercial viability in the
power sector
q Reduce outages & interruptions
q Increase consumer satisfaction
The scheme has two components as below:
a. Investment component – Government of
India provides Additional Central Assistance
for strengthening and up gradation of subtransmission
and distribution network.
Additional Central Assistance covers 50%
of the project cost in the ratio of grant and
loan as 1:1. SEBs and Utilities have to
arrange remaining 50% of the fund from
Power Finance Corporation (PFC) and Rural
Electrification Corporation (REC) or other
financial institutions or from their own
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