Punjab Newsline
Boost to power sector reforms in budget
VINOD KUMAR GUPTA
Tuesday, 07 July 2009
NEW DELHI: The Union Budget gave a big boost to power sector reforms programme by increasing the allocation to Rs 2,080 crore.

"I propose to increase the allocation for the Accelerated Power Development and Reforms Programme to Rs 2,080 crore, a steep increase of 160 per cent from the allocation in the budget estimates of 2008-09," Finance Minister Pranab Mukherjee said after presenting the Annual Budget today.

Accelerated Power Development and Reforms Programme (APDRP) is a government scheme for reducing the gap between power demand and supply. The scheme, which was restructured last year, would also focus on establishing baseline data of AT&C and sanctioning projects for improvement of distribution network. APDRP aims to bring the Aggregate Technical and Commercial (AT&C) losses to less than 15 per cent from 35 per cent at present. Under the scheme, the government provides 50 per cent Central assistance to upgrade sub-transmission and distribution network.

The ministry has also augmented the budgetary support to the sector by around Rs 3130 crore, and has allocated Rs 9,230 crore towards this end, in the new budget. The maximum share from this amounting to Rs 6,300 crore has been given to Rajiv Gandhi Grameen Vidyutikaran Yojana for rural electrification.

Ministry of Finance has increased budgetary allocation to the power sector by around 46% in the Union Budget 2009-10, as compared to the revised allocation for the year 2008-09. Against a total outlay of Rs 36,306.47 crore for the fiscal 2008-09, this year’s budget has earmarked Rs 53,126.27 crore for the power sector.

NTPC has been granted an outlay of Rs 17,700 crore, which would be used for its ongoing projects. Damodar Valley Corporation has been given plan allocation of Rs. 8313.34 crores for its expansion projects.

NHPC has been allocated Rs 4,667.99 crore for various ongoing projects and new proposed projects of Kotli Bhel.A plan outlay of Rs 580.06 crore earmarked for Satluj Jal Vidyut Nigam Limited (SJVNL) is for its Rampur, Luhri, Devsari and Naitwar Mori hydroelectric projects in Himachal.

Further a sum of Rs 11,510 crore has been given to r Power Grid Corporation of India to finance its ongoing transmission links.