CM for speedy reforms in power supply system

Various models of power distribution utility functions  reviewed
Chief Minister Mr. Omar Abdullah today asked the Power Development Department to study models of privatization of power distribution and come up with a concrete proposal that can be discussed in the Cabinet. He said privatization of power distribution is gaining popularity across the country and has worked successfully in states like Delhi. 
The Chief Minister was speaking today at a high-level meeting, which was convened to assess various models of privatization of power distribution utility functions. 
Chief Secretary Mr. S. S. Kapur, Financial Commissioner, Planning and Development, Mr. S. L. Bhat, Principal Secretary to Chief Minister, Mr. Khurshid Ahmad Ganai, Commissioner/Secretary, Finance, Mr. Sudhanshu Pandey, Commissioner/Secretary, Power Development Department (PDD), Mr. Sandeep Naik, Power Development Commissioner, Mr. Aftab Ahmad, besides Chief Engineers and senior officers of the department attended the meeting.
Drawing attention to the need for reforms in electricity transmission and distribution system, Chief Minister Mr. Omar Abdullah today said time was ripe to create mass awareness about transmission losses due to theft and misuse of electric energy. 
Mr. Abdullah said a holistic concept paper needs to be formulated for working out a strategy in the direction of power reforms taking all stakeholders including general public on board. “A mechanism is required to be put in place to reform the system and save State exchequer from power losses that have touched Rs. 2,200 crore annually”, the Chief Minister said.  
Asking consumers of all categories to pay tariff in tune with their actual consumption, the Chief Minister said the government’s prime objective is to reduce deficit on account of power generation and bridge the gap between availability and consumption. “While PDD has to work for ensuring regular and quality power supply to consumers, it was the duty of the consumers to pay charges according to the load they are utilizing”, he said.
Mr. Kapur asked PDD to gear up its rank and file and fulfil the commitments made on account of power reforms. He said effective checks and balances in power distribution at various levels are imperative and also urged the department to strictly implement timely revenue collection.
Mr. Naik explained various elements of privatization of power distribution and also dwelt at length about policy framework and options in this field. He said the total agreement load in 2008-09 in the State stood at 1,969 MW with number of consumers of all categories standing at 12.16 lakh. He said demand of power in the same year was 2,120 MW while as local availability stood between 716 and 941 MW. Energy purchased in the same period was 9,147 MU, costing over Rs. 1,600 crore, he added.
Mr. Naik said peak demand in the State during 2009-10 is estimated at 2,247 MW, against availability of 1,545 MW, which leaves a deficit of 702 MW. He said this deficit could be reduced substantially by plugging thefts and transmission losses. He also cited examples of privatization and franchisee models working in Delhi, Pune and Bhiwandi and explained improvements registered in the power distribution system in these areas due to these models.