60 Distribution circles as Centres of Excellence for Distribution Reforms under Accelerated Power Development Programme (APDP)
Under APDP, 60 distribution circles have been identified in different States for improvement/strengthening of the sub-transmission & distribution network in such a manner as to develop Centres of Excellence. This would enable States to replicate the strategy in other circles. The objective is to ensure that the investment in these distribution circles would result in quantifiable physical & financial benefits.
During the year 2000-01, Rs. 576.22 crores were sanctioned under APDP for the States to undertake short-term measures like metering at all levels covering all consumers within the circles, installation of capacitors to correct power factor and replacement of failed distribution transformers (DTs) and augmentation of transformation capacity which could result in (a) immediate financial gain (b) reduction of technical losses and (c) reduction of system break downs.
All the States have taken action to implement the short term projects. Certain States where metering has been completed, have shown immediate gain in revenue ranging from 20 to 30%.
Strengthening of sub-transmission & distribution network involves three broad areas of action viz. Commercial, technical and manpower restructuring.
- Commercial action includes tamper proof metering at all level of transformation and for all the consumers; operationalising energy accounting up to feeder level; de-centralised computerised billing & collection; development of MIS and proper duties & responsibilities up to the line man. Commercial activities target reduction of commercial losses and improvement of revenue.
- Technical action involves conversion of the existing distribution network into a high voltage distributon system (HVDS) which covers reduction of LT lines; taking high voltage line up to the load centre and supplying power through smaller capacity energy efficient distribtuion transformation; reconductoring of over loaded lines; power factor correction; Geographic Information System (GIS) mapping, polewise consumer information etc. This requires detailed energy audit & accounting studies, analysis of the data using software for developing component aided HVDS network model.
- Restructuring the manpower involves review
of the manpower right from the Superintending Engineer to line man
and fixing proper duties, responsibilities and accountability at
each level.
KV Feeder as Profit Centre
The approach mentioned above will need to be implemented for each 11KV feeder upward upto 33/11kV sub-station and in the entire identified circles. This will ensure energy accounting and reduction of commercial and technical losses in all the feeder. This way each feeder can be operationalised as an independent profit centre. This is possible as one junior engineer deals with two feeders on an average. Full responsibility can be assigned to him.
Capacity Building
Even though SEBs have expertise in different fields, strengthenign of sub-transmission & distributon network as suggested above requires an integrated knowledge. SEBs, during the regional meetings held in April and then later in June, 2001 expressed their inability to take up such work with their own manpower. It is necessary to promote capacity building exercise in the SEBs/State Power Utilities. This will enable SEB personnel to prepare detailed project reports for each of the districts/circles and implement the project using APDP funds at a later stage. It is proposed to take up capacity building exercise in the SEBs/Utilities, so that they are able to take up energy audit & accounting studies, analyse the data, using computer tools, prepare project reports and implement the same aimed at improving sub-transmission and distribution network.
Capacity building exercise will cover
- Training the manapower
- Making the SEB officials collect relevant data from each 11 KV feeder in the identified circle.
- Analysis of the data using computer tools to prepare feeder wise computer aided least cost project report.
- Supervision of implementation
Reform MOUs with the States and their monitoring
To give a strong impetus to the process of reforms, the Ministry of Power organised a Conference of Chief Ministers/Power Ministers on Power Sector Reforms on 3rd March 2001. The Conference was chaired by the Prime Minister and was also attended by the Deputy Chairman (Planning Commission), Union Finance Mnister, and Union Power Minister. In the Conference, a number of decisions on reforms, having far-reaching consequences, were taken. Of various discussions on reforms, signing of MOUs with States for undertaking reforms and restructuring in a time bound manner and linking the support of Government of India to achievement of pre-determined milestones is expected to provide the necessary impetus to the reform process. Sixteen States have already signed the MOUs and similar MOUs with most of the remainign States are at an advanced stage.
A high level Empowered Group of Chief Minister, Deputy Chairman (Planning Commission); Union Finance Minister and Union Power Minister has also been constituted to monitor and guide the reform process.
To monitor the progress of the reforms as per the MOUs, state-wise responsibility centres have been identified in the Ministry of Power.
Privatisation/Corporatisation Models of Distributon thrugh the Policy level Committee
In the Chief Ministers conference held in March 2001, it was also decided to constitute a Committee under Secreatary (Power) to suggest strategies and measures for attracting private sector investment in distribution with special reference to:
- Methodology of seeking private sector participation;
- Handling of past liabilities and making privatisation offer attractive to potential investros
- Possible linking of private sector investments of generation with distribution; and
- Increasing the number of potential
investors.
The committee has made sufficient progress and is likely to submit is report shortly.