Former Prime Minister of India - Shri Atal Bihari Vajpayee

Prime Minister's Speech at the Inauguration of Northern Region ULDC Scheme

The Prime Minister, Shri Atal Bihari Vajpayee inaugurated and dedicated to Nation the Northern Region Unified Load Despatch and Communication (ULDC) Scheme of POWERGRID here today. Also present on the occasion were Shri Suresh Prabhu, Minister of Power, Smt. Jaywanti Mehta, Minister of State for Power and Chief Minister of Delhi, Smt. Shiela Dixit.

Following is the text of the Prime Minister’s speech on the occasion:

~Dear Friends, I am glad to note that POWERGRID in a short span of a decade has become one of the largest transmission utilities in the world.

To manage the vast transmission network in an efficient manner, POWERGRID has taken up the implementation of Unified Load Despatch and Communication Schemes in all the five regions of the country. The Northern Region ULDC, is the first in the series, followed by the Southern Region, which has also been completed. I am told that POWERGRID would be able to

operate the grid optimally with greatly enhanced safety, security, reliability, and economy as a result of this scheme.

Engineers of POWERGRID, State Electricity Boards, and other organizations who have contributed in establishing this Scheme, deserve full appreciation. I congratulate them on this occasion.

I am sure POWERGRID will rise to the occasion in meeting the demand for power by establishing the National Grid in a phased manner, which will enable exchange of 30,000 Megawatt of power across the country by the year 2012.

To facilitate this process, Government has already made the enabling legal amendments for facilitating private investment in transmission. The regulatory framework is also in position to provide a level playing field to all participants. POWERGRID should now take the initiative in structuring transmission projects in association with the private sector so that the massive

resource requirements of the power sector are met and there is a quantum jump in the level of efficiency and financial viability in India's power sector.

To meet the growing demand for power, it is estimated that an additional one lakh megawatt of power is required in the next ten years, along with matching transmission and distribution systems. The investment required to add this capacity would be of the order of Rupees eight hundred thousand Crore. The Government is taking various steps to generate these funds through public and private investments.

This investment, however, shall be forthcoming and viable only when a measure of success is achieved in overcoming major shortcomings, both technical and institutional in the distribution arrangements for electricity. A concerted effort needs to be made to reduce the high level of T&D losses that prevail today, check electricity theft, and ensure tariff rationalization to achieve financial viability for the distribution utilities. While substantial progress has been made in this regard, we need to redouble our efforts, and overcome the shortcomings that continue to persist. I am told that in China and South Korea, T&D losses are 8 to 12 percent; in India, it is still more than 25 percent.

I recall that at the meeting of State Chief Ministers and Power Ministers held under my Chairmanship in March 2001, it was resolved to ensure Energy audit at all 11 KV feeders, elimination of power theft in the next two years, full metering of all consumers, and commercial viability in distribution in two to three years .

Despite ten months having passed, eleven of our twenty-eight states have still not taken the first step of setting up a regulatory commission. Many more have not yet initiated reforms in the power sector. Even where this has been done, the successor companies of SEBs in many states have not yet moved fast to implement the agreed reforms. In some states, these companies are still not free from political and bureaucratic interference, defeating the purpose of reforms. Therefore, I call on all states to accelerate the pace of electricity reforms. Only then will we give affordable and assured power to all our people.

However, despite these teething troubles, there is progress in the last few months. I compliment Orissa, Andhra Pradesh, Uttar Pradesh, Maharashtra, Gujarat, Haryana, Delhi, Karnataka, Rajasthan, Himachal Pradesh, and Madhya Pradesh for their State Electricity Regulatory Commissions have independently revised the electricity rates. Combined with 100 percent metering and billing and more efficient collection and energy audit, it is expected that T&D losses would go down to a realistic level. Only then can we see more public and private investment in our power sector.

The Government has already stepped in to assist the States under the Accelerated Power Development Programme. In the first phase, 63 distribution circles in various States are being taken up for intensive upgradation of the sub-transmission and distribution system. While we are moving in the right direction, we must intensify our efforts to achieve concrete positive results by way of a financially viable Power Sector, which continues to elude us.

Once again I complement POWERGRID and all those associated with the ULDC project for this commendable achievement. Last year, I had seen some of the sub-stations in earthquake devastated Bhuj that you had rebuilt in three months, which was indeed commendable.

I hereby inaugurate the Northern Region Unified Load Despatch and Communication Scheme of POWERGRID and dedicate it to the nation.

Thank you~.