One third of massive investment proposed in the power sector during the Eleventh Plan (2007-2012) may evaporate if the transmission and distribution (T and D) losses are not checked even as Karnataka figures among top six states in bringing down the T and D losses.

Of the total investment of Rs 810,000 crore in the power sector during 11th Plan, over Rs 270,000 crore may well evaporate into an unknown space if war-footing steps are not taken to control mammoth T and D losses, a pan-India study conducted by the ASSOCHAM reveals.

India can more than make up its severe power shortages if only 50 per cent of the transmission and distribution losses are reduced by stoppage of theft and up-gradation of transmission and distribution system.
The study warned that given the high T and D losses to the order of 30 to 40 per cent, India would not be able to come out of the power crisis as the financial health of the utilities would go on deteriorating.
The study which has gone into the T and D losses state-wise shows that Haryana tops the list of states reducing T and D losses.

State’s progress
While Haryana and Andhra Pradesh have brought down the level of T and D losses to 15 per cent and 19 per cent respectively, Karnataka, which has shown progress in the power sector reform, has reduced the T and D losses level to 20 per cent.

Pondicherry, Jharkhand and Tamil Nadu are the other three states which have been able to keep their transmission and distribution losses below 20 per cent. On the other hand barring these six states, the level of T and D losses in most of the remaining states range between 25 and 60 per cent with Assam topping the list with 51 per cent T and D losses, the study shows. Against this backdrop, the study suggests that the ambitious target of adding 78,000 MW of power generation capacity during the 11th Plan would call for private participation in a big way.

However, towering T and D losses may act as a major deterrent to the private as well as global investments in the sector. It is noteworthy that none of the global power majors has shown interest in India’s transmission and distribution sector. Inability to attract sufficient capital might result in a failure to attain the targeted capacity in yet another plan.

The study also reveals that every one per cent reduction in T and D losses can save additional capacity of 800 MW.