AT&C losses to be reduced from 34-15pc

Power Sector

AT&C losses to be reduced from 34-15pc

In the coming times, a five-fold increase is expected in terms power generation to suffice the growing demand and to keep up with the current economic growth.

Deepa Damodaran

Friday, October 31, 2008

BANGALORE, INDIA: “The government aims at bringing down AT&C (Aggregate Technical and Commercial) losses in the power distribution sector from 34 to15 percent, at 1 percent per year rate, by the end of the 11th Five-Year Plan,” said Montek Singh Ahuwalia, Deputy Chairman, Planning Commission, Government of India.

He was speaking at the release of 'Technology: Enabling the Transformation of Power Distribution in India', report recently. The report, commissioned by the Ministry of Power, the Government of India, and prepared by the Centre for Study of Science, Technology and Policy (CSTEP) and Infosys, proposes a roadmap to ensure the energy security of India.

The report observes that India's power sector, in particular the distribution sector, must undergo a fundamental transformation to serve India's economic growth and societal needs. The report also puts forth the suggestion of a national institution to drive this motive.

Growing demand for power and issues
Nandan Nilekani, co-chairman, Infosys, said: "In the coming times, a five-fold increase is expected in terms power generation to suffice the growing demand and to keep up with the current economic growth. India has an installed capacity of 140GW and it is estimated that by 2030 the need would grow to 800GW. As of now India's national power consumption average stands very low at (700kwh) with comparison to that of the world's (2,600kwh). This has to be increased."

"With an accelerating demand for power, power distribution will grow to be a great business opportunity in the coming times. However, at this hour, power distribution is facing the most pressing need for transformation. Nevertheless, the road ahead promises several hindrances," Nilekani added.

Major issues that haunt DISCOMs are high AT&C losses (of the 34 percent, 20-24 percent is due to theft), aging and poorly maintained system, unreliable and overloaded system, low demand side management (DSM) initiative, corporate governance challenges and lack of skilled resources and training.

On the one hand, when states like Himachal Pradesh (13 percent), Andhra Pradesh (12.5), Karnataka (12 percent) and Tamil Nadu (20 percent) showcase a very low AT&C loss rate, there are states like Maharashtra, Madhya Pradesh, Bihar, Uttar Pradesh that have a loss rate of 40-45 percent, respectively.

Jairam Ramesh, Minister of State of Commerce and Power, Govt. of India, added: "Moreover, states need not be apprehensive in terms of players entering private sectors. TN has showcased that even public sectors can fare better if the plan is carried out successfully. There should be a healthy competition among public and private sectors."

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CK Sharma said on 7/19/2010 10:15:07 AM:
Moving in the wrong direction does not solve problem. The government is moving in the wrong direction. It should aim to reduce the demand/ contain rather than project an increase. In the eleventh plan the target was 87000 MW, We have met only 24000 MW in the first three years. The government cannot meet the balance target of 63000 MW in the balance 3 years. The nation is being taken for a ride by the planners knowing fully well that it is impossible to meet the target. Even the Nuclear power will not be available by 2020. The government should provide energy in the form of Gobar Gas plant to the farmers. These plants will reduce the dependence of poor men on the government for power and fertiliser. Thus the farmer - India is a agriculture country - will provide the answer to the energy needs of the country. The chemical fertiliser consumption will come down drastically there by forcing them to close and save electricity.

to CK Sharma