Bihar State Power Holding Company Limited (BSPHCL) on Monday signed an agreement with REC Limited to further strengthen the power infrastructure, improve operational efficiencies and financial sustainability of the power distribution companies (DISCOMs) and cut aggregate technical and commercial (AT&C) losses under the revamped distribution sector scheme (RDSS).
Under the agreement, the North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL) would get Rs6,625 crore. Besides, Rs1,993 crore would be allotted for Smart Prepaid Meter work and Rs400 crore for Information Technology Operational Technology (ITOT) to cut the AT&C losses by March, 2026. Of the total allotted funds, 60 per cent would be borne by the Centre and 40 per cent by state government.
BSPHCL’s chairman-cum-managing director (CMD) Sanjeev Hans signed the agreement with chief program manager of REC Limited, Joginath Pradhan, in the presence of managing directors of NBPDCL and SBPDCL, Prabhakar and Mahendra Kumar, respectively.
Hans exuded confidence that the agreement would boost power infrastructure.
To strengthen infrastructure under RDSS, the NBPDCL would get Rs3,100 crore and SBPDCL Rs3,525 crore. Besides, for Smart Prepaid Meter work, the NBPDCL would be allotted Rs969 crore and SBPDCL Rs1,024 crore. For ITOT, the DISCOMs would be sanctioned Rs400 crore.
“With the allotment of funds, the infrastructure would be strengthened and we would be able to cut AT&C losses. We have set a target to cut the AT& C of 25.74 per cent (2020-21) of NBPDCL to 16 per cent by 2025, and for SBPDCL from 36.80 per cent (2020-21) to 20 per cent in the next three years,” Hans said.
