Implementation Of 2nd Phase Of Accelerated Power Development & Reforms Plan Okayed THE government on Thursday signalled revival of distribution sector reforms by approving the long-pending implementation of remodelled second phase of Accelerated Power Development and Reforms Programme (APDRPII) that aims to bring down aggregate technical and commercial (AT&C) losses of utilities to 15% within five years. The restructured programme, entailing investment of Rs 51,577 crore, would be implemented during the Eleventh Plan period, providing incentives for strengthening distribution network around the country. A proposal to this effect was cleared by the Cabinet committee on economic affairs (CCEA) at a meeting here. According to revised terms and conditions of APDRP, state power utilities would draw up investment plan on projects aimed at reducing AT&C losses. They would then manage funds in the form of loans from institutions for 75% of the project cost. The Centre would provide the balance funding (25%) from its budget as loans to power utilities. The Centre's loan as well as an additional 25% of the loan amount would be converted into central grant in five equal tranches on achieving the 15% AT&C loss in the project area on a sustainable basis for five years. In case of special category states, the Centre's loan support would be 90% and the same would be converted into grant on achieving the target. 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. An amount equivalent to 2% of the grant for projects is proposed as incentive of utility staff in project areas where AT&C loss levels are brought below 15%. The APDRP-II has been divide into two components. Part A of the scheme would focus on establishment of base line data and fixation of accountability and reduction of AT&C losses through strengthening and upgradation of sub-transmission and distribution network and adoption of information technology. It has been decided that participation of the private utilities in APDRP would be reviewed after a period of two years from the date of sanction of the re-structured programme. Even though original APDRP lapsed in March 2007, inter-ministerial differences have prevented the new scheme from getting operationalised.