Government Reforms Yield Remarkable Results: Power Supply Boosted, Distribution Losses Slashed
Date: December 19, 2023
In a major announcement, Union Minister for Power and New & Renewable Energy, Shri R. K. Singh, revealed the positive outcomes of government-led reforms, showcasing an increase in power supply and a substantial reduction in power distribution losses.
According to the minister, the Aggregate Technical & Commercial (AT&C) losses, which stood at 25.72% in FY 2014-15, have significantly decreased to 15.41% (provisional) in FY 2022-23. This achievement is attributed to a series of reforms aimed at enhancing efficiency and reducing losses in the power distribution sector.
Key Highlights:
- Improved Power Supply: The availability of power supply in rural areas has witnessed a commendable rise from 12.5 hours in 2015 to 20.6 hours in 2023. Urban areas now enjoy a power supply of 23.78 hours in 2023.
- Reform Measures: The reduction in distribution losses is a result of strategic reforms and measures implemented by the Government of India, including timely payment for government-declared subsidies, up-to-date tariffs, and significant reductions in legacy dues of GENCOs.
- Financial Discipline: The government has ensured financial discipline by putting rules in place for timely payment, reducing legacy dues, and ensuring prompt payments to GENCOs. Energy accounting and energy audits have also been implemented for transparency.
- Strengthened Distribution System: An investment of ₹1.85 lakh crore has been made to strengthen the distribution system, adding 2927 new sub-stations, upgrading 3965 existing sub-stations, installing 6,92,200 distribution transformers, and expanding the network by 8.5 lakh circuit kilometers of high-tension and low-tension lines.
- Revamped Distribution Sector Scheme (RDSS): The government approved the RDSS on June 30, 2021, with an outlay of ₹3,03,758 crores and gross budgetary support of ₹97,631 crores over five years. This scheme focuses on loss reduction works to enhance efficiency.
- Financial Improvements: According to the ‘Report on Performance of Power Utilities,’ financial losses of distribution utilities have decreased from ₹46,521 crore in FY 2020-21 to ₹31,026 crore in FY 2021-22.
- State-wise Impact: The detailed state-wise and utility-wise data illustrates a reduction in losses and improved financial performance across various regions.
R. K. Singh emphasized the government’s commitment to further strengthening the power distribution sector and ensuring sustainable and reliable power supply across the country.
This information was shared by the Union Minister in a written reply to a question in the Rajya Sabha on December 19, 2023.
