Highlights of the Integrated Power Development Scheme launched by the Ministry of Power, in order to provide the necessary impetus to the Indian power sector and to boost the power distribution networks.
Efficient distribution of electricity is one of the key elements which affect the power sector. In India, efficient management of the power distribution networks is one of the key challenges faced by the power sector today.
In the given backdrop, an efficient sub-transmission and distribution network together with necessary metering arrangements is the need of the hour for providing the necessary impetus to the Indian power sector.
The Integrated Power Development Scheme (IPDS) which was approved by the Union Cabinet on November 20, 2014 has been sanctioned for launch/
implementation by the President of India and the same has been notified by the Ministry of Power, Government of India vide its Office Memorandum dated December 3, 2014. The IPDS is aimed to extend financial assistance against capital expenditure and to address the gaps in sub-transmission, distribution networks and metering in urban and semi-urban areas.
The primary objectives of the IPDS scheme are:
1. Strengthening of the sub-transmission and distribution network in urban areas;
2. Metering of distribution transformers /feeders / consumers in urban areas;
3. IT enablement of the distribution sector and strengthening of the distribution network as per the Cabinet Committee on Economic Affair‟s (CCEA) approval dated June 6, 2013 for completion of targets laid down under the Restructured Accelerated Power Development and Reforms Programme (R-APDRP) for the 12th and 13th Five Year Plans, by carrying forward the approved outlay for RAPDRP to IPDS;
4. Completion of optical fibre missing links to connect all the 33KV or 66KV grid sub-stations under the establishment of the National Optic Fibre Network;
5. Establishment of the National Power Data Hub at CEA;
6. Training and capacity building; and
7. Provisioning of solar panels.
The ongoing scheme of R-APDRP will get subsumed in the new scheme of IPDS and will be continued as a separate component of IPDS for IT enablement of the distribution sector and strengthening of the distribution network in urban areas and the said scheme is expected to reduce transmission losses and also improve the distribution networks, which is a key element for the power sector.
Power Finance Corporation Limited (PFC) shall be the nodal agency for operationalization and implementation of the IPDS scheme under the overall guidance of the Ministry of Power.
Suitable tripartite agreements shall be executed between PFC as the nodal agency on behalf of the Ministry of Power, the State Government and the distribution companies (DISCOMS) to ensure implementation of the IPDS scheme in accordance with the guidelines prescribed under the scheme.
The estimated cost of implementing the IPDS scheme with the components of strengthening of sub-transmission and distribution networks, including metering of consumers in the urban areas is Rs. 32,612 Crore which includes the budgetary support from the Government of India of Rs. 25,354 Crore over the entire implementation period.
The IPDS scheme is aimed to strengthen the sub-transmission and distribution systems, including provisioning of solar panels, metering of distribution transformers / feeders / consumers in urban areas, and IT enablement of the power distribution sector. The projects undertaken under the IPDS scheme shall be implemented on turn-key/ partial turnkey or departmental basis, in line with Part-B of the R-APDRP.
It is pertinent to note that all DISCOMS including private sector DISCOMS and state power departments shall be eligible for financial assistance under the IPDS scheme. However, the DISCOMS will have to setup dedicated teams for implementation of the projects taken up under the IPDS scheme, including necessary manpower and requisite infrastructure, logistics etc., for the purpose of implementation and monitoring of the projects taken up under the IPDS scheme.
The process of sanctioning of projects to be taken up under the IPDS scheme is scheduled to start with immediate effect.
However, it is must be noted that the IPDS specifically sets out that the projects taken up under the IPDS scheme are required to be completed within 24 (twenty four) months from the date of issue of the Letter of Award.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
