Southco draws up Rs 492 crore paln for ATC loss

PTI | 02:10 PM,Oct 06,2010
Berhampur (Orissa), Oct 6 (PTI) Southco, a unit of Reliance Energy and one of the power distribution companies in Orissa, has drawn up a Rs 492 crore plan for next four years to reduce the aggregate transmission and commercial (ATC) loss by 21 per cent by 2013-14. The present loss of ATC in Southco was estimated at 50 per cent. With this fund, the company seeks to reduce the loss to 29 per cent in the next four years, while 3 per cent in the current year. Out of the total estimated cost, the state government will provide Rs 109.33 crore as a soft loan at 4 per cent interest, Rs 136.67-crore as nil interest. While the rest Rs 246 crore will be spent by the distribution company from its own resources as the counter funding. Besides reducing the ATC loss, the fund will also be utilized for the improvement of power distribution system and to avoid low-voltage in some parts of the distribution area.Southco has taken responsibility to distribute power in 10 southern Orissa districts of Ganjam, Gajapati, Koraput, Rayagada, Nabarangapur, Malkanagiri, Kalahandi, Nuapada, Kandhamal and Boudh. The other three distribution companies including Wesco, Nesco and Cesu were also getting funds from the state government to reduce their ATC losses. The state government will spend around Rs 2400-crore for this purpose. Out of this, Southco will get Rs 492 crore, vice-president of Southco Tapan Mishra said.