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Restructured Accelerated Power Development and Reforms Programme(R-APDRP)

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The Restructured Accelerated Power Development and Reforms Programme (R-APDRP)started in 2008 is a revised version of the Accelerated Power Development Reforms Programme (APDRP). The APDRP schemewas initiated in 2002-03 as Additional Central Assistance to States for reducing the Aggregate Technical and Commercial (AT&C) losses in the power sector[Aggregate Technical and Commercial Loss captures the total loss in the distribution network. Technical loss may be due to ill maintained equipment, substations and inadequate investment in infrastructure while commercial loss may be due to low metering efficiency, faulty meter reading, theft and pilferages] and improving the quality and reliability of power supply. This was to be achieved by strengthening and upgrading the sub-transmission and distribution system of high density load centres like towns and industrial centres.

APDRP scheme was restructured as a Central Sector Scheme and renamed as R-APDRP. The Power Finance Corporation (PFC) is the nodal agency to operationalize the scheme under the guidance of Ministry of Power. PFC will act as a single window service provider under the scheme and coordinate with the different stakeholders like Ministry of Power, APDRP Steering Committee, Central Electricity Authority, Financial Institutions, State Electricity Boards/Utilities and Consultants.

R-APDRP is for urban areas- towns and cities with population of more than 30,000 (10,000 in case of special category states).The focus of R-APDRP is on actual, demonstrable performance in terms of sustained loss reduction. This is proposed to be achieved in two parts:Part A of the scheme envisages establishment of base line data which includes consumer indexing, GIS mapping and metering of distribution transformers and feeders and SCADA/DMS (Supervisory Control and Data Acquisition System/Data Management System) in project areas having a population of 4 lakh and annual input energy of 350 MU. This part of the scheme also includes IT applications for energyaccounting/auditing and IT based consumer service.Part B of the scheme is for renovation, modernization and strengthening of distribution systems.

The eligibility criteria for R-APDRP assistance is:

  1. Constitution of State Electricity Regulatory Commission.
  2. Reduction of AT&C losses at utility level by 3 % per year for utilities having losses above 30% and by 1.5% per year for utilities having losses below 30%.
  3. Setting a time frame for introduction of measures for better accountability at all levels in project area.
  4. Submitting the AT& C loss figure of the previous year of the identified project area by 30th of June. This figure is to be verified by an independent agency appointed by Ministry of Power.
  5. Evolving an incentive scheme for the staff which is linked to achievement of 15% reduction in AT&C loss in the project area.

For Part A of the scheme, the Central Government will provide 100% loan and for Part B of the scheme 25% of loan (90% for special category States). Power Finance Corporation/ Rural Electrification Corporation will be the agency disbursing the loans under this scheme. The entire amount of loan (100%) of Part A of the project shall be converted into grant, once the base line system is established within 3 years from the date of sanctioning the project.If the Distribution Utilities achieve the target of 15% AT&C loss on a sustained basis for a period of 5 years in the project areas and the project is completed within the time schedule fixed by the Steering Committee, which shall in no case exceed five years from the date of project approval, up-to 50% (90% for special category states) loan against Part-B projects will be convertible into grant in equal tranches.If the utility fails to achieve or sustain the 15% AT&C loss target in a particular year, that year’s tranche of conversion of loan to grant will be reduced in proportion to the shortfall in achieving 15% AT&C loss target from the starting AT&C loss figure.

Funds under the R-APDRP scheme are released only when a quadripartite agreement is signed between State Electricity Boards/Utilities, Government of India, Power Finance Corporation and State Government.

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