The gap between cost of power supply and revenue needs to be narrowed down to attract investment. "Distribution management is our top priority to break even," says Ram Vinay ShahiSecretary, Power.
Most important, we’ve to turn around the electricity sector from its present state of bankruptcy to a commercially-vibrant sector. We’ve not been able to attract investments anywhere because of the distribution sector. This trend has to be reversed and the commercial gap between the cost of supply of power and the revenue has to be narrowed down. Distribution management is thus top priority.
We propose to follow a three-pronged strategy to tackle this: rationalisation of tariff, reduction of technical and commercial losses in the supply system including theft of electricity, and bringing about a substantial improvement in bill collection. This will take the distribution sector to break-even and eventually a surplus situation.