Wednesday, October 15, 2014

Gujarat power sector


Key reasons for strong profitability for Gujarat distribution companies:
  • The ‘Jyotigram’ scheme led to feeder separation and metering of agricultural load, and in-turn reduced AT&C losses - Gujarat implemented the Rural Feeder Segregation Scheme, popularly known as the ‘Jyotigram Scheme’, under which it bifurcated its transmission lines catering to rural areas for households and agricultural purposes. It helped the state in mapping and controlling the power supply to heavily subsidised agri consumers from residential consumers, who have to pay normal domestic tariffs. Whereas Agri consumers get a few fixed hours of regular single phasesupply, residential consumers are supplied 24x7 power at regular tariffs.
  • Significantly higher industrial load (42%) at 20% higher tariffs
  • It’s the only state to have significant surplus power sale to other states leading to Rs. 27 bn additional revenue advantage over other states.
The Gujarat tariff gap has been among the lowest. Key reasons why as it has been able to keep
the cost of power lower:

  • Negligible debt/ interest costs
  • Reduced AT&C losses 19%
  • Advance action on building sufficient capacities and tie-ups for long-term power


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