Cabinet approves Rs. 32,600 crore power scheme.

The Cabinet has approved the Rs. 32,600 crore Integrated Power Development Scheme ( IPDS) that will strengthen the transmission and distribution networks and metering in urban areas and smarten it with information technology. It also approved a Rs. 43,033 crore scheme, which includes the requirement of budgetary support of Rs. 33,453 crore, for rural areas to separate agricultural supply from non-farm supply.

Cutting transmission losses and improving distribution is a key element for the power sector, and the initiative follows steps to ease coal shortage and discussions to formulate a financial package for the sector, where thousands of megawatts of capacity are idling or operating sub-optimally because of fuel shortage or inadequate distribution network.

A government statement said the cabinet had approved last year a scheme for IT enablement of the distribution sector and strengthening of distribution network and laid down targets. It said the budgetary support needed for the scheme was Rs. 25,354 crore during the implementation of the scheme.

'The component of IT enablement of distribution sector and strengthening of distribution network approved by CCEA in June, 2013 ... will get subsumed in this scheme,' it said.

ET