Capital Expenditure (CAPEX) Programme for improvement of T&D System
Objective: To improve the T&D infrastructure of the state for enhanced
quality and reliability of power supply to customers.
The entire electrical network was as old as 30-35 years by the time it was privatized
in 1999. Most of the electrical networks are now almost 45 years old. After privatization
of power sector, government subsidy has been withdrawn and no transitional support
has been given to the sector. As a result, there has been no infusion of funds to
the distribution sector leaving the distribution network in a dilapidated condition.
Since the period of reforms the consumer base has been doubled from 13 lakhs in
1999 to 26 lakhs in 2008-09 and the input drawl of energy has increased from 10000
MU in 1999-2000 to 20000 MU in 2008-09. The necessity of restructuring of infrastructure
in distribution sector is felt. Keeping in view, the Sovan Kanungo Committee on
review of power sector reforms had recommended financial support of र
3240.00 crore. The Odisha Electricity Regulatory Commission has also approved the
business of the DISCOMs for the period 2008-09 to 2012-13 with investment of र
5000.00 crore by the Year 2013 by both Govt. of Odisha and DISCOMs. With a view
to support the power distribution sector, the Government of Odisha placed a proposal
before 13th Finance Commission for a grant of र 500 crore.
Funds flow arrangement: The Government of Odisha with an objective
to improve the infrastructure of power distribution system has approved a proposal
for र 2400 crore in distribution sector including the financial
support of 13th Finance Commission at र 500 crore. The aforesaid
amount was meant to be spent within a stipulated period of four years starting from
2010-11 to 2013-14 but as per the revised programme the period has been extended
up to five years i.e. from 2011-12 to 2015-16, out of which, Government of Odisha
will provide र 1200 crore and DISCOMs will invest र
1200 crore from their own source / or through market borrowings as per the original
schedule . The State Government have made a plan provision of र
135 Crore in the F.Y. 2014-15. By September,2014 Government of Odisha have released
र 680.83 crores to the DISCOMS.
(Rs. In Crore)
|
Sl No.
|
Sources
|
Financial year
|
|
2011-12
|
2012-13
|
2013-14
|
2014-15
|
2015-16
|
Total
|
|
A
|
State Govt. Funding
|
|
1
|
Financial Commission Grant(FCG)
|
125.00
|
125.00
|
125.00
|
125.00
|
-
|
500.00
|
|
2
|
1/3rd matching share of State Govt. to FC Grant
|
20.00
|
-
|
73.33
|
73.34
|
-
|
166.67
|
|
3
|
1/3rd matching share of GRIDCO (State Govt.) to FC Grant
|
20.00
|
-
|
73.33
|
73.34
|
-
|
166.67
|
|
4
|
States own Contribution
|
255.83
|
10.00
|
50.00
|
50.83
|
-
|
366.66
|
|
|
Sub-total (1+2+3+4)
|
420.83
|
135.00
|
321.66
|
322.51
|
-
|
1200.00
|
| B |
DISCOMs Counterpart Funding |
| 5 |
1/3rd DISCOMs share to FC Grant |
- |
- |
83.34 |
83.33 |
- |
166.67 |
| 6 |
DISCOMs own Contribution |
- |
- |
- |
133.33 |
900.00 |
1033.33 |
|
Sub-total (5+6) |
- |
- |
83.34 |
216.66 |
900.00 |
1200.00 |
| C |
Total (A+B) |
420.83 |
135.00 |
405.0 |
539.17 |
900.00 |
2400.00 |
The CAPEX programme has been rescheduled vide Government Of Odisha
Notification No.6603,Dt. 08.08.2013 and the reschedule goes as follows:-
Out of the State government Support of र 1200 crore;
- Grant of
र 500 crore from 13th F.C. is to be initially passed on as loan with 0% interest.
र 166.67 crore of matching State share against 13th F.C. grant as loan with 0% interest.र 166.67 crore of Loan to GRIDCO for 1/3rd counterpart funding to F.C. Grant with 4% interest.र 366.66 crore as budgetary support in shape of soft loan with 4% interest.
Loan of र 666.67 crore bearing 0% interest may be considered for conversion in to grant after full utilization of
the loan for the specified purpose and achievement of loss reduction target of 3% p.a.
Implementation Status: The State Government budgetary support along with 13th Finance Commission Grant amounting
to र 1200 crore will be invested in CAPEX programme along with the balance fund of र1200 crore to be provided by the GRIDCO and distribution
company. The Government of Odisha will provide loan to GRIDCO and GRIDCO on on-lending basis provides funds to the DISCOMs. The DISCOMs have
to prepare the detailed project reports of their own which will be approved by the OERC and the Project Monitoring Committee. The DISCOMs shall
have to reduce the AT & C loss @ 3% p.a. in the project area during the implementation period. In order to incentivize the DISCOMs to perform
efficiently & effectively र 666.67 crore zero interest bearing loan shall be convertible to grant on pro rata basis subject to achievement of AT&C
loss reduction target of 3% per annum and after full utilization. The loan of र 666.67 crore carrying zero percent interest consists of र500 crore
FC grant & र 166.67 crore, State Government Counterpart funding to FC grant. The conversion would take place over a period of five years The first
year would be the year starting after one year following the year of disbursement of each tranche of loan.
Project Monitoring Mechanism:GRIDCO acts as Nodal Agency for implementation of the project under
the overall guidance of the Energy Department. It co-ordinates with agencies involved such as Energy Department,
Finance Department, Government of Odisha, DISCOMs and the Monitoring Committee in the matter of sanction of DPRs,
release of funds, monitoring and use of loan and recovery of principal and interest through a suitable ESCROW mechanism.
The Project Monitoring Committee consists of Principal Secretary, Energy Department, Government of Odisha as Chairman,
representatives of Finance Department, representative of P & C Department, Govt. of Odisha, Managing Director, GRIDCO,
Chief Electrical Inspector, T&D, MD/CEO/VP of DISCOMs, Financial Advisor, Department of Energy, Govt. of Odisha as
Members and Addl. Secretary / Joint Secretary as the Convener. The Project Monitoring Committee reviews the progress of
work time to time for timely completion of the project.