Holes In The Bucket

THE country lost an estimated revenue of Rs 5,000 crore between 1990-91 and 1992-93due to transmission and distribution (T&D) losses, nearly Rs 1,700 crore per year. Maharashtra lost the highest, Rs 775 crore, followed by Rs 500 crore each in Uttar Pradesh, Gujarat and Madhya Pradesh. Things may have worsened in subsequent years. All-India T&D losses have been on the rise from 17.6 per cent in 1970-71 to 20.6 per cent in 1980-81 to the present level of around 22-23 per cent (globally, 10 per cent is the figure considered acceptable).

Perhaps the single most important factor responsible for high T&D losses is the lack of adequate investment in the T&D systems. After growing by nearly 20 per cent per annum between 1950 and 1970, T&D lines grew by only 8 per cent a year in the '80s and a miserly 1 per cent per annum in the early '90s. The Rajadhyaksha Committee on Power (1980) has urged that T&D, including rural electrification, should receive about 50 per cent of the total allocation of the power sector, but the Eighth Plan accords it only 28 per cent. When T&D investments are not commensurate with the growth of installed capacity, it leads to unreliable supply conditions and those deadly voltage fluctuations.

According to a study by Canadian Energy Research Institute (CERI) and TERI, of the total 23 per cent T&D losses, 4 per cent are transmission losses and the rest distribution. The TERI study identifies many flaws in our system. Lack of proper distribution planning invariably results in system overload. Distribution technology too is inappropriate—low voltage systems which are suitable for countries with high load densities and not for a large country like India with loads sparsely spread over wide areas. Quality of electricity meters is poor and calibration facilities are inadequate.

A significant part of T&D losses, between 18 and 20 per cent, is on account of pilferage. On May 9 last year, H.D. Deve Gowda, then chief minister of Karnataka, said publicly that "500 MW of power is being stolen every year by industrialists and influential persons with the connivance of Karnataka Electricity Board officials." In August 1986, theft of electricity was made a cognisable offence under Section 39 of Indian Electricity Act, 1910. That the law has been a lame duck is obvious. The onus of reducing T&D losses should also be shared by the consumers, including domestic and agricultural users, says Dr Rajendra K. Pachauri of TERI. Many agricultural pumpsets are inefficient, resulting in major loss of power. Such pumpsets waste almost 70 per cent of the power they get.

Privatisation may be a solution. Distribution should be fully privatised over a period of time, says Power Secretary P. Abraham. But so far, the bulk of private investment proposals in India have been for greenfield power generation projects.