T&D sector to get Rs 4.27 lakh crore fillip in XIth plan

Cabinet likely to clear proposal for mega investment soon

The government is planning to invest Rs 4.27 lakh crore in transmission and distribution (T&D) sector during the X1th five-year plan (2007-2012) to keep in pace with the increase in power generation capacity in the country.

Rakesh Nath, chairperson of Central Electricity Authority (CEA), said, “The proposal to invest the amount was already with the Cabinet and the CEA was expecting it would be approved soon.”

He said the major focus would be towards strengthening distribution in rural areas.

Out of the total, up to Rs 1.4 lakh crore will be invested in the transmission sector. The central government would invest close to Rs 75,000 crore and the remaining would be brought in by the state governments.

“It is very important to speed up the T&D activities to keep pace with the aggressive pace of the increasing generation capacity,” he said.

Since gestation period in the T&D sector is not as high as the generation sector, the target could be achieved in line with the addition of the projected 78,000 MW of generation capacity under the eleventh five year plan.

“The distribution system would entail an investment of close to Rs 2.8 lakh crore and would be used to not only introduce modern techniques and equipment but also to reduce the huge aggregate technical and commercial losses (AT&C), control theft and pilferage, rationalise the tariff structures and provide electricity to the rural areas by 2009,” he said.

Nath said, out of this, Rs 51,000 crore will be funded through the accelerated power development and reform programme (APDRP) for urban areas and another Rs 51,000 crore through the Rajiv Gandhi Rural Electricity Scheme (RGRES) for strengthening the system in the rural areas.

Talking on the sidelines of a seminar on power by Indian Electrical and Electronics Manufacturers’ Association (IEEMA), Nath said strengthening the T&D system would also include setting up of a 765 KV ring around the western, northern and eastern regions.

This ring would connect Sipat, Seoni, Bina, Gwalior, Agra, Fatehpur, Sasaram, Gaya, Ranchi and back to Sipta.

“This system would help in taking generation capacities to remote locations in the country and ensure uniform distribution of power everywhere,” he said.

However, this ring would be in place by the beginning of the twelfth five year plan starting from March 2012.

But before that, stress will be to extend the 765 KV transmission line circuit kilometres from 1,704 circuit kilometres to 7,132 circuit kilometres at the end of the XIth five-year plan.