About APDRP

Power is a critical infrastructure for economic growth. The economic acceleration would greatly depend upon a commercially viable power sector that is able to attract fresh investments. However, the financial health of State Electricity Boards (SEBs) become a matter of grave concern considering that their losses have reached an alarming level of Rs.26,000 crores during 2001-00,which was equivalent to about 1.5% of GDP. Accelerated Power Development Programme (APDP) had been undertaken from the year 2000-01 as a last means for restoring the commercial viability of the Distribution Sector.

 

Since incentive financing is proposed to be integrated with the existing investment programme to achieve commercial viability of SEBs / Utilities and link it to the reform process, the original APDP was rechristened to Accelerated Power Development & Reforms Programme (APDRP) during 2002-03 for 10th five year plan.

The objectives of APDRP are:

  • Improving financial viability of State Power Utilities
  • Reduction of AT & C losses
  • Improving customer satisfaction
  • Increasing reliability &quality of power supply
  • The scheme has two components as below:

    1. Investment component – Government of India provides Additional Central Assistance for strengthening and up gradation of sub-transmission and distribution network. 25% of the project cost is provided as Additional central plan assistance in form of Grant to the state utilities. To begin with the Govt. also provided loan to the tune of 25% of the project cost. However in accordance with the recommendation of 12th finance commission, the loan component has been discontinued from FY 2005-06. Now utilities have to arrange remaining 75% of the project cost from FIs like PFC/REC or their resources. Special category state (like NE states, J&K, H.P, Uttaranchal and Sikkim) are entitled for 90% assitance in form of grant and balance 10% fund they have to arrrange.

    2. Incentive component - An incentive equivalent to 50% of the actual cash loss reduction by SEBs/ Utilities, is provided as grant. The year 2000-01 is the base year for the calculation of loss reduction, in subsequent years. The cash losses are calculated net of subsidy and receivables.

      Funds Released

    The details of the cash loss reduction and incentives released to various states under APDRP are as below:(As on 31 March 2008)

    Sl. No.
    State
    Claim Year
    Incentive Amount Recommendedfor released to MoF
    Amount Released by MoF
    1. Andhra Pradesh
    2002-03
    265.11
    265.11
    2. Gujarat
    2001-02
    236.38
    236.38
    2002-03
    148.08
    148.08
    2003-04
    366.82
    366.82
    2004-05
    288.03
    288.03
    3. Haryana
    2001-02
    105.49
    105.49
    4. Kerala
    2002-03
    64.94
    64.94
    2004-05
    82.99
    82.99
    5. Madhya Pradesh
    2002-03
    297.61
    297.61
    6. Maharashtra
    2001-02
    137.89
    137.89
    7. Rajasthan
    2001-02
    137.71
    137.71
    8. West Bengal
    2002-03
    73.00
    73.00
    2003-04
    302.76
    302.76
    2004-05
    5.88
    5.88
    2005-06
    115.10
    115.10
    9. Punjab
    2003-04
    251.94
    251.94
    Total
    2879.63
    2879.63

    Schemes undertaken under APDRP are for renovation and modernisation of sub-stations, transmission lines & distribution transformers, augmentation of feeders & transformers, feeder and consumer meters, high voltage distribution system (HVDS), consumer indexing, SCADA, computerised billing etc.