The Budget gave a big boost to power reforms programme by increasing allocation to Rs 2,080 crore (Rs 20.80 billion), or a rise of 160 per cent from the previous fiscal.
A circular power grid connecting the northern region to the western grid would be a major component. The grid would cover Seepath, Zeoni, Bina, Gwalior, Agra, Fathepur, Sasaram, Gaya and Ranchi, connecting back to Seepath in North India.
The government's only programme to attack transmission and distribution losses - called the Accelerated Power Development and Reform Programme (APDRP) - lapsed last year and the proposed "new APDRP" has been bounced back and forth between the ministry of power, Planning Commission and the finance ministry for the last few months.
With administered gas and coal supply coming to an end, there is no alternative to SEB reform
The losses of state electricity boards have come down by a massive Rs 8,000 crore (Rs 80 billion) in 2003-04, thanks to the Centre's incentive-based initiative through accelerated power development and reform programme (APDRP).
NDA's energy plan powered UP win, but it's not a winner yet. Centre has claimed to have saved money by targeted coverage but critics say the system is not yet foolproof.
If nothing is done, the country is set to become 83 per cent energy-import-dependent by 2040.
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