Source: The Economic Times
An Itanagar-based affair, the Government of Arunachal Pradesh has forayed into a ₹6,519-crore plan with infrastructure upliftment and transformation of its power sector in mind. The ultimate goal has been loss reduction, power infrastructure upliftment, and better quality and efficient service across the state. It also aims to shield the finances of the state while carrying out these various large-scale upliftments.
The plan was announced by the latest Chief Minister, Pema Khandu, on Monday; he considers this a giant leap on the road towards a firm and modern power setup of the state.
“Arunachal Pradesh is powering ahead with a massive transformation of its power sector,” he said in a post on X.
“Our target is clear; low losses, high reliability, and zero fiscal stress,” he added.
Minimizing Power Losses
A large part of the plan deals with reducing aggregate technical and commercial (AT&C) losses arising out of power generation, transmission, and distribution from outdated systems, etc. To reduce the overall loss of power, the government has earmarked ₹788 crore specifically for this purpose. This will assist in maximizing the efficiency of the power supply, predominantly in isolated and difficult-to-access areas.
Modern Grids and Smart Meters
The plan includes smart meter installations and modern power grids. This will allow monitoring of electricity usage in real-time, billing accuracy, and better control over power consumption by the government and consumers.
Smart meters will assist in stopping waste and enable homes and businesses to monitor their electricity. This will enable individuals to make more informed choices about their energy consumption and/or reduce costs.
Gap financing will protect funding.
Because the project is going to be substantial, the government will provide gap funding. This gap funding means that if the revenue I collect from electricity bills is insufficient to pay for the overall project cost, the government will reimburse the difference. This guarantees that the project will not be a liability for the state.
“To ensure the massive financial undertaking does not translate into an economic burden, the government has also committed to providing gap funding. This will help cover the difference between capital investment and cost recovery, thus preventing strain on public finances,” the CM said
A Step Towards Growth
The Chief Minister expressed that this approach is evident for addressing immediate issues, but has also served as a way to prepare Arunachal for a future of growth. Reliable power supply is important to rural and urban development, as well as attracting investment in the state.
“This is a transformative step towards a power-secure Arunachal,” he added.
