Patna: When cutting the losses of DISCOMs (distribution companies) remain a challenge for power holding companies across the country, Bihar State Power Holding Company Limited (BSPHCL) is taking steps that would pay it in the long-term to maintain a healthy balance sheet. 

“Under Revamped Distribution Sector Scheme (RDSS), signed an agreement with REC Limited with a view to further strengthening the power infra, improve operational efficiencies and financial sustainability of the two DISCOMs and cut Aggregate Technical and Commercial (AT & C) losses,” said Chairman-cum-Managing Director (CMD) Sanjeev Hans.

Under the agreement, the two DISCOMs – North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL) – would get Rs 6,625 crore, besides this, Rs 1,993 crore would be allotted for Smart Prepaid Meter (SPM) work and Rs 400 crore for Information Technology Operational Technology (ITOT) to cut the AT & C losses by March 2026. Of the total allotted fund 60% would be borne by Centre and 40% by the Bihar government. 

Bihar under the visionary leadership of Chief Minister Nitish Kumar is aggressively installing Smart Prepaid Meter across all households. In the first phase, the SPMs would be installed in urban areas. Till now more than 10 lakh SPMs have been installed. 

Hans exuded confidence that with the signing of agreement with REC Limited, the power infrastructure would get a boost. “As earlier also we will live by the reputation of completing the projects before the deadline,” he said. 

To strengthen infrastructure under RDSS, NBPDCL would get Rs 3,100 crore and SBPDCL Rs 3,525 crore. Besides this, for Smart Prepaid Meter work NBPDCL would be allotted Rs 969 crore and SBPDCL Rs 1,024 crore. 

For ITOT, the DISCOMs would be sanctioned Rs 400 crore. 

“With the allotment of funds, the work of strengthening the infrastructure would be carried out and we would be able to cut AT & C losses. We have set a target to cut the AT & C of 25.74% (2020-21) of NBPDCL to 16% by 2025; while for SBPDCL from 36.80% (2020-21) to 20% in next three years,” he said. 

The increase in electricity demand has necessitated strengthening and modernisation of the distribution infrastructure, beside IT (Information Technology) wing in DISCOMs for effective implementation of smart metering, billing and collections.

Bihar on growth trajectory has witnessed massive consumption of electricity. The peak load during summers has crossed more than 6500 MW.