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Friday, November 21, 2014
Moving towards 24X7 power: Government approves 3 key schemes
NEW DELHI, 21 November, 2014: Moving towards PM Narendra Modi-led government's objective to provide 24*7 power supply, the Cabinet has approved multiple schemes to improve transmission and distribution networks and begin work on the North Eastern Region Power System Improvement Project.
The Rs 32,600 crore Integrated Power Development Scheme (IPDS) will strengthen the transmission and distribution networks and metering in urban areas and smarten it with information technology.
The Cabinet also approved a Rs 43,033 crore scheme, which includes the requirement of budgetary support of Rs 33,453 crore, for rural areas to separate agricultural supply from non-farm supply.
Cutting transmission losses and improving distribution is a key element for the power sector, and the initiative follows steps to ease coal shortage and discussions to formulate a financial package for the sector, where thousands of megawatts of capacity are idling or operating sub-optimally because of fuel shortage or inadequate distribution network.
We take a look at the proposed benefits of the three major Cabinet decisions aimed at solving problems of the power sector:
Integrated Power Development Scheme
The Integrated Power Development Scheme (IPDS) is aimed at strengthening sub-transmission and distribution network in the urban areas; metering of distribution transformers /feeders / consumers in the urban areas; IT enablement of distribution sector and strengthening of distribution network.
According to the press release from the government, "The scheme will help in reduction in AT&C losses, establishment of IT enabled energy accounting / auditing system, improvement in billed energy based on metered consumption and improvement in collection efficiency."
The process of sanction of projects shall commence immediately. After sanction of projects, contracts for execution of projects are to be awarded by States Discoms / Power Departments. The projects shall be completed within 24 months from date of award.
Deendayal Upadhyaya Gram Jyoti Yojana
The Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) aims (i) to separate agriculture and non agriculture feeders facilitating judicious rostering of supply to agricultural and non-agricultural consumers in rural areas and (ii) strengthening and augmentation of sub transmission and distribution infrastructure in rural areas, including metering of distribution transformers/feeders/consumers.
According to the Cabinet, the scheme would help in:
1) Improvement in hours of power supply in rural areas, 2) Reduction in peak load, 3) Improvement in billed energy based on metered consumption and 4) Providing access to electricity to rural households.
The process of sanction of projects shall commence immediately. After sanction of projects, contracts for execution of projects will be awarded by States Discoms / Power Departments. The projects shall be completed within 24 months from date of award.
North Eastern Region Power System Improvement Project
The North Eastern Region Power System Improvement Project (NERPSlP) for six States ( Assam, Manipur, Meghalaya, Mizoram, Tripura and Nagaland) is meant for strengthening of the Intra State Transmission and Distribution System at an estimated cost of Rs 5111.33 crore.
The scheme is to be taken up under a new Central Sector Plan Scheme of Ministry of Power (MoP). The scheme is to be implemented with the assistance of World Bank loan and the budget of MoP.
According to the Cabinet, "Implementation of this project will create a reliable State power grid and improve its connectivity to the upcoming load centres, and thus extend the benefits of the grid connected power to all the consumers." "The project would also provide the required grid connectivity to such villages and towns of the States, where development of distribution system at the downstream level has been taking place under Gol sponsored RGGVY/ APDRP/ R-APDRP schemes."
The Cabinet said that this project is a major step towards meeting the national objective of "Power to All" through enhancement in access of consumers to grid connected power supply through improving its availability and reliability, thereby facilitating inclusive growth.
"This shall also increase the per capita power consumption of these States, which is lagging behind the average national consumption and shall contribute to the economic development of the North-Eastern Region," the Cabinet said.
Courtesy: The Economic Times