Rs.51,577-cr. APDRP scheme approved for power sector reforms
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  • The Union Cabinet on July 31 gave its approval to a restructured Accelerated Power Development and Reform Programme (APDRP) with a total budget of Rs. 51,577 crores covering a total of 571 projects. An allocation of Rs. 17,033 crores in the first phase was approved.

    Finance Minister P. Chidambaram told reporters that the grant component amounted to Rs. 6,445 crores while the loan component stood at Rs. 2,274 crore. Loans would go towards those utilities which accepted certain parameters both in the utility areas and in project areas. In the project area, the utilities have to bring down Aggregate Technical & Commercial (AT&C) losses to below 15 per cent, whereas in the utility area (which was a larger area), they have to bring them down by 1.5 - 3 per cent. The initiative was aimed at cutting commercial losses of central and state utilities. Prime Minister Dr. Singh during the May 28, 2007 Chief Ministers conference on power, had promised to put in place an incentive-based APDRP for the States to give thrust to distribution reforms.

    The state-run Power Finance Corporation (PFC) would be the nodal agency for executing the programme. The project area will be towns and cities with a population of more than 30,000 and 10,000 in case of special category states. Rural areas with heavy loads requiring feeder segregation may also be included in the project areas.

    Projects will be taken up in two phases. Part-A will include projects for establishment of baseline data and IT applications for energy accounting/auditing and IT-based consumer service centres. Part-B will include regular distribution strengthening projects. Initially 100 per cent funds for Part-A and 25 per cent funds for Part-B projects would be provided through loan from the Union government. For special category states, loans for Part B projects will be 90 per cent. The balance funds for Part B projects will be raised from financial institutions1.