Thursday November 5, 04:05 AM

Source: Indian Express Finance

Orissa needs Rs 600 cr to boost power distribution

By fe Bureaus
The Orissa government needs an investment of Rs 600 crore to strengthen the distribution network in the state. The chief minister, Naveen Patnaik, submitted the proposal to the 13TH Finance Commission at a meeting with chairman Vijay Kelkar in New Delhi on Tuesday, according to a state government spokesperson. The government has proposed that the 13th Finance Commission should provide Rs 200 crore while the state government, Gridco and distribution companies will provide Rs 100 crore, Rs 147 crore and Rs 153 crore respectively to implement the project. Since Orissa has privatised the distribution business, it doesn t qualify for funds from the Rs 51,577 crore Accelerated Power Development and Reform Programme fund. But the Orissa power sector is becoming unviable becasue of high transmission and distribution losses which is hovering on an average of 40%. Unless the distribution network is strengthened, it would be difficult for distribution companies to sustain the business, admitted a senior official of the state energy department.