Odisha government to expand financial guarantee support to GRIDCO, Energy News, ET EnergyWorld

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Bhubaneswar: The Odisha government decided to expand the necessary financial guarantee support to GRIDCO (Grid Corporation of Odisha) because demand for electricity declined during the lockdown period, an official said. The decision in this regard was taken at a high-level review meeting chaired by Chief Secretary AK Tripathy on Tuesday where it was felt that Gridco needs support as electricity is a critical issue.

“Due to the shutdown and blockages, the demand for electricity decreased by 14% during the period from March to June 2020 compared to the previous year,” the official said, adding that both production and captive consumption had also fallen by 25 percent. one hundred in April, 12 percent in May and 2 percent in June.

Due to the reduction in demand, GRIDCO’s revenue gap has widened as it has to pay fixed charges to power plants in accordance with the power purchase agreement.

“Based on the facts, the meeting decided to extend the necessary financial guarantee for GRIDCO, as electricity is an essential basic need,” said the official.

Tripathy also called on state-owned companies Gridco and OPTCL (Odisha Power Transmission Corporation Limited) and distribution companies (DISCOM) to make the electricity sector self-sufficient through aggressive reform of the system and reduction of technical losses. and global commercial (AT&C).

GRIDCO CMD Saurabh Garg said that at present, the scope of electricity distribution has been extended to 89 lakh consumers in the current year compared to 16 lakh consumers in 2000.

He said AT&C’s percentage loss has been reduced from 57 percent to about 29.94 percent during the period and that the state has a surplus of power of about 1,000 MW per year.

The chief secretary asked the authorities to focus on reducing AT&C losses, as a 1% reduction in AT&C losses results in a revenue gain of around Rs 130 crore.

GRIDCO Finance Director Gagan Swain informed that Odisha’s current electricity tariff for agriculture, domestic, industrial and commercial use is lower than that of many states like Andhra Pradesh, Bihar, Karnataka, Jharkhand, Madhya Pradesh, West Bengal, Uttar Pradesh and others. Currently, the power supply in Odisha is subsidized for domestic and agricultural use, he said.

NB Power Secretary Dhal informed the meeting that the framework for the future and said that Odisha’s installed power generation capacity is around 7.15 GW, of which 2.13 GW is hydroelectricity, 4.36 GW of thermal and 0.66 GW of renewable sources.

In addition, various industrial houses have also installed captive factories with a capacity of around 9.85 GW, he said.

Tripathy also asked OPTCL and DISCOMs to improve the quality and reliability of the power supply by optimizing the use of the existing network. He said ensuring quality supply will encourage industries to source electricity from GRIDCO rather than setting up their capital-intensive captive factories.

The chief secretary asked the Industry Ministry to motivate industrial units to source electricity from GRIDCO, officials said.

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