Regular power supply brings down electricity theft

Rural Electrification Corporation chairman says electricity pilferage is coming down

geetanjali

Geetanjali Minhas | September 28, 2010



With government granting infrastructure finance company (IFC) status to Rural Electrification Corporation (REC), its  exposure to private sector will increase from 35% to 40% . ECBs  of  upto  500 million dollars will not require RBI approval and it will  be able to raise infrastructure bonds interest rate below G Sec  rates.

In a press conference held in Mumbai, Jairaj Phatak , chairman and managing director, Rural Electrification  Corporation while addressing the media  said,  “In future , we will raise  1 billion dollars of ECB’s . The bulk will come from regular bonds. Infrastructure  bonds and  1000 crore of tax free bonds  will be another source of borrowings .We have already  raised  400 million dollars from east and south east Asian markets.  A similar amount may be raised from European markets.”

Answering  a question on why electricity is not reaching all regions  Phatak said, ‘Each  MW requires an investment of 5 crores to take electricity to every region.  Transmission and development ( T&D ) requires another 5 crores. Weak states did not have funds and administrative skills to afford this.”

On demand -supply gap Phatak  added, “10-15% gap in demand supply will continue.  If we can install 1 lakh MW in the 12th plan  the demand supply gap will come down. Though  power generation has become attractive , new and renewable sources and transmission and distribution are not  financially attractive to public sector banks.”’

“Electricity pilferage is steadily coming down . Transmission and Distribution losses (commercial losses ) are coming down by 1% per annum on an average . In  Bhiwandi town a sizeable reduction in  electricity pilferage has been achieved . It is a steady process  and with more improvements  we should be able to arrest 10%  pilferage like South Korea  has done .Regular power supply  brings down  electricity thefts.”

Answering a question on increasing  REC  exposure to decentralized power , Phatak replied,  “Decentralised Distribution Generation  is only going to  be  effective when the village is not grid connected, else benefits of RGGY are not available. In Chhattisgarh there is a potential of 1112 projects, the target this year is 7. CREDA  has already prepared 44 Detailed Project Reports . In  Madhya Pradesh 50 DPR’s have been prepared by MPUVN against a target of 6. In Rajasthan against target of 3, JVVN is preparing the DPR . Similarly there is potential  in  J&K and Gujrat . In Maharashtra we feel most villages can be grid connected in the next three years. In Arunachal , MRNE  has taken up small hydel projects so they do not want our DDG.”

Comments

 

Other News

Uneasy calm in riot-torn Delhi

No untoward incidents have been reported from the parts of the capital that witnessed communal riots this week, but the peace Thursday morning was still tentative and a number of those hospitalized for injuries were battling for life. Clashes began Sunday evening and engulfed parts of northe

Modi-Trump show gives India-US ties new dynamism

In the more than 40 hours of stay in India during his two-day visit, US president Donald Trump exhibited his talents as a politician and also a showman with acumen to provide the Indian audience and Americans back home enough opportunity to stay glued to his activities on the Indian soil. Whether it be his

People-to-people relations the real foundation of Indo-US friendship: Modi

On the second and last day of US president Donald Trump’s India visit, prime minister Narendra Modi said the real foundation of Indo-US friendship is people-to-people relations. Trump, meanwhile, sidestepped the contentious issues of the protests against the new citizenship law, telling a joint press

America loves India, America respects India: Trump

America loves India, America respects India, said US president Donald Trump as he and first lady Melania Trump began their short visit of India from Ahmedabad on Monday, welcomed by prime minister Narendra Modi. The US president was in Ahmedabad, in Modi`s home state of Gujarat, to attend th

2020 is crucial for CPSE: Arjun Ram Meghwal

"The year 2020 is going to be a significant year for India and especially for Central Public Sector Enterprises (CPSE), "said the Arjun Ram Meghwal, Minister of State for heavy industries and public enterprises on Wednesday at the 7th PSU Awards and Conference organised by Governance Now on 19th

Vice President springs surprise, speaks in 22 languages

Highlighting the importance of preserving, protecting and promoting Indian languages, the vice president of India, Shri M Venkaiah Naidu spoke in 22 languages at an event to mark International Mother Language Day in New Delhi. He urged all the citizens to take a pledge to promote mother tongue and also lea



Archives

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter