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.
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 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).
Power business contributes to a large part of the engineering sector's order books. With the clearing of the blueprint to add 100,000 MW of electricity generation capacity by 2012, the sector might be a major beneficiary.
Tax incentives to have cascading effect on the capital goods industry.
