The consultation for Electricity (Amendment) Bill, 2021 has been done and the draft Bill has been sent to the Cabinet Secretary for further consideration, said Power Minister RK Singh on Friday, after his meeting with the top officials of the Ministry and heads of DISCOMS of all States/UTs on Friday.
“Consultation for the Electricity (Amendment) Bill, 2021 has been done and sent to the Cabinet Secretary for further consideration,” Singh said when asked if the Bill will be introduced in the monsoon session or not.
The Minister said that under the KUSUM scheme, agriculture feeders are being solarised. Thirty per cent of the cost of solarisation is met from the KUSUM, and seventy per cent is loan from NABARD/PFC/REC.
“The target of the scheme is to bring down the Aggregate Technical and Commercial Losses (AT&C Losses) to 12-15 per cent at the all India level and bring down the gap between Average Cost of Supply (ACS) and Average Revenue Realised (ARR) to zero by 2024-25,” Singh said . He further added that the aim is to establish an operationally efficient and financially sustainable power sector which is equipped with modern technologies like smart grids and to meet this requirement, the government has launched the revamped distribution sector scheme.
Meanwhile, power distribution companies (DISCOMs) that are making losses will not be able to access the funds under this Scheme unless they draw up a plan to reduce the losses; list out the steps they would take to reduce such losses and the calendar; thereof, get their State’s approval to it; and file it with the Centre. The fund flow from the scheme will be contingent on their adhering to the loss reduction trajectories.
He further informed that action plan and detailed project report (DPR) need to be formulated by the DISCOMs in consultation with the Nodal Agency or Ministry of Power; and that REC, PFC, and the Ministry would provide all necessary assistance in this regard . DISCOMs will also indicate specific activities and reforms required to improve their performance as part of the action plan. The deadline for DPRs submission would be December 31.