PROPOSAL FOR PRE-PAID METERS IN 19 STATUTORY & CENSUS TOWNS
Despite the projected loss of revenue in power sector, the Power department’s revenue actually jumped 18.87% to Rs 116.53 crore in 2017-18 from Rs 98.075 crore in 2016-17.
Highly reliable sources from power department informed Nagaland Post that power purchase in the year 2016-17 was Rs 281.97 crore, which went up marginally to Rs 282.66 crore in 2017-18. Under normal circumstances, the power purchase usually increased and the projection was much higher in 2017-18 too, but it was systematically controlled to almost the same level as in the previous fiscal, sources explained.
While expenditure on power purchase was by and large getting controlled, the revenue was increasing, thus indicating that perhaps the department was slowly inching towards making profit in the coming years.
The earlier figure of loss amounting to Rs 309.97 crore in 2017-18 and the projected loss of Rs 318 crore in 2018-19 were inclusive of salary of the whole department, sources pointed out.
Meanwhile, the power department had signed an agreement with Government of India for Ujwal Discom Assurance Yojana (UDAY) on November 20, 2017 for improving operational efficiency in power distribution. UDAY agreement would enable the Government of India to monitor the performance of various States and, based on the performance, incentives and benefits would be extended to State power utilities.
Keeping in view of the need to quickly reform and revive the power sector, the department was on the job to cover 19 census towns in Nagaland with pre-paid metering facility and, once the project materialised, the department hoped to earn profit.
Earlier, department had implemented a pilot project in Dimapur district that was reported to be a huge success. The department has also sent its proposal to the government for installing pre-paid meters in all the 19 statutory towns and census towns across the state having population above 5000, with an estimated project cost of Rs. 372.34
As per the proposal, financial contribution expected was Rs. 335.11 crore by outsourcing Rs. 37.23 crore (10% of project cost) by the state government.
The installation will comprise of two components– installation of prepaid meters and HT/LT infrastructure for improving the quality of power supply as the customers would be paying in advance. The project is expected to get materialised in about a year.
Further, the department was also initiating steps to set up a power corporation that could open avenues for foreign investments, joint ventures, etc, and the State could also be competing with other States in luring investors.
Currently, five North-eastern states of Arunachal Pradesh, Assam, Manipur, Meghalaya and Tripura have power corporations, and Tripura State Electricity Corporation Limited (TSECL) is doing well and even exporting power to Bangladesh. Mizoram, Nagaland and Sikkim are yet to set up power corporations.