The programme, to be implemented over the next few years, aims at building a capacity of utilities to reduce distribution losses and enhance quality and reliability of power supply.

In the first phase of the capacity-building programme for structured distribution reforms, 25,000 utility managers, engineers and technicians from all over the country would be trained at ten Indian institutes.

Launching the programme, Union Power Minister PM Sayeed said that the critical distribution sector was being given its long-due recognition and targets for improving delivery. "The real test lies in performance sustainability", he added.

Training will focus on three functional areas -- technical, managerial and business, and supportive functions. A financial assistance of $20 million is expected as funding for the programme.

The programme is part of USAID's Distribution Reform, Upgrades and Management project.

Ten institutions, including the National Power Training Institute, Administrative Staff College of India, Centre for Efficiency in Power Distribution at NDPL, Central Institute for Rural Electrification, National Productivity Council, The Energy Resources Institute, Indian Institute of Technology-Kanpur, the Reliance Management Institute and Power Management Institute are part of the programme, which begins in January, 2005.

The overall goal is to put in place commercially viable electricity distribution systems that provide reliable power to consumers and to establish a commercial framework.

CORE International, a US-based international management consulting firm, will spearhead the DRUM training programme by forging effective partnerships with Indian training institutions.