POWER

Govt plans to garner Rs 70,000 crore from asset monetisation of PowerGrid, NTPC, REC over 5 years

The Centre is all set to move ahead with its asset monetisation plans and is likely to garner Rs 70,000 crore through monetisation of assets of state-controlled power giants such as Power Grid, NTPC and REC (formerly Rural Electrification Corp. in the next five years. Further, about 50 per cent of funds are expected to go into bolstering state transmission and distribution infrastructure.

Citing an unnamed senior government official, ET reported that intra-state power transmission, sub-transmission and distribution networks are mostly underinvested, leading to massive technical losses and power outages.

The proposed investment is over and above the Rs 3.03 lakh crore power distribution company reform scheme for the revival of the power distribution sector in India. In June this year, the Union Cabinet gave the green signal for a Rs 3.03 lakh crore result-linked power distribution scheme, under which state power distribution firms would receive grants each year only if they reach the targets agreed for the previous fiscal.

“If transmission losses at the state level are at an average of 3 per cent, the losses at 33 kV (kilovolt) lines are as high as 9-10 per cent. There has been no emphasis on building, strengthening and upgrading intra-state transmission and distribution network by the states.

Source
Times Now
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