Mohinder Verma
JAMMU, Sept 22: Gearing up to avail the benefit of newly launched National Electricity Fund (Interest Subsidy) Scheme, the State Government is submitting Rs 1500 crore worth proposals to the Union Government by the middle of next month for revamping of distribution network in the areas not covered by Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) and Restructured Accelerated Power Development and Reforms Programme (R-APDRP).
The National Electricity Fund Scheme was recently launched by the Union Government to provide interest subsidy on loans to be disbursed to the distribution companies with the objective to improve the distribution network. The preconditions for eligibility are linked to certain reform measures taken by the States and the amount of interest subsidy is linked to the progress achieved in reforms linked parameters. The nodal agency for National Electricity Fund (NEF) is Rural Electrification Corporation Ltd (REC).
Official sources told EXCELSIOR that as Interest Subsidy Scheme is based on first come and first serve, the State Government without wasting any time chalked out Rs 1500 worth proposals in consultation with the Rural Electrification Corporation and the same will be submitted to the Union Government by the middle of next month.
As Jammu and Kashmir falls in the Special Category States, it would avail the interest subsidy between 5 % to 7 % as against only 3 % to 5 % available to other States of the country, sources said, adding “since huge investment is being made in the power generation and several hydroelectric projects would come up in the State during next some years, it is imperative to revamp and restructure the distribution network for better evacuation of power. In view of not much investment in distribution system so far the newly launched scheme would be of immense help for Jammu and Kashmir”.
In response to a question, sources said that since towns with population of less than 10,000 have not received any focus under RGGVY and R-APDRP, Rs 1500 worth proposals would target such towns in both the regions of the State for revamping of distribution network. Under the scheme, all the components of distribution network like poles, transformers, receiving stations, replacement of normal cables with Aerial Bunch Cables would get covered.
“As the scheme is linked with reforms, the State Government would have to reduce the Aggregated Technical and Commercial (AT&C) losses and reduce the gap between average cost of supply and average revenue on subsidy received basis”, sources said.
Responding to another question, they said, “since huge capital would have to be arranged by the State Government on Rs 1500 worth proposals, it is contemplating to approach the Planning Commission of India for financial assistance”, adding “there would be no major hurdle in getting financial assistance from the Planning Commission in this regard as it has already made commitment with the State Government to fund revamping of distribution network in non-RAPDRP towns of the State”.
They said that reforms have been linked with this scheme as the viability of the entire power sector depends on the viability of the distribution utilities. The Union Government has also laid down certain pre-conditions for availing the benefits of new scheme and Jammu and Kashmir fulfills the same.
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