Simultaneously, the companies have started collaborating with South African power companies, pioneers in this field, for the manufacture of high-tech meters required as software for implementing the sale of pre-paid power in the country.

Speaking to The Financial Express, a noted technocrat working with the power sector and one of the organisers of the forum who spoke on condition of anonymity said that the idea of selling pre-paid power had struck him and several like-minded individuals involved with the power sector who were concerned about the mounting losses and thefts which the state electricity boards were being saddled with.

"Power is a commodity which has been paid for fully by the time it is delivered to the consumer - from coal or other fuel required for production at the power station to the land on which the station is constructed to the salaries of the employees - while the boards have to wait almost four months before being paid for it largely on account of the inordinately long billing process which takes almost three-and-a-half months coupled with the 115 days credit period which the consumer enjoys," he lamented.

It is in view of this that the forum has started lobbying for pre-paid power. The concept, which has already been put into practice by South Africa, saddled as it was with mounting power losses and thefts like India, has been a resounding success. Several Indian corporates have already initiated talks with the South African power companies and those engaged in manufacture of meters in an attempt to learn more about the technology.

According to sources, a collaboration has already been forged by an Indian company, Secure Meters, with a South African company for the manufacture of meters with computer chips. Even the Swiss-Swedish multinational, ABB, which has a sizeable presence in the power sector in India is in an advanced stage of manufacture of meters which can be read by substations.

Conservative estimates show that the cost of such computer chip-based meters would roughly be around Rs 3,500 for domestic consumers while for industrial consumers, it would work out to a slightly higher Rs 12,000.

The high-cost is on account of the fact that the chip and wiring is being imported. However, sources said they were optimistic that the price of such meters could be brought down to more affordable levels of around Rs 2,000 given the fact that the Power Finance Corporation has evinced interest in giving a loan for the project.

But those who are promoting the concept of pre-paid power say that consumers will not feel the pinch of the initial investment on such meters given the fact that they will more than make up for the expense in terms of convenience they will provide.

No more would he be required to queue up for hours to pay his electricity bills but also the harassment of paying through his nose for faulty meters. All a consumer has to do is to go to the nearest 33/11 KV substation and pay for his power supply in advance which will be credited into his account and he would be given a code number. The code number, which once it is punched into the meter at home, will activate the power supply. Not only that, the meter would also be programmed to set off an alarm to warn of voltage fluctuations and also to alert the consumer on impending payment when only 10 per cent of the amount paid is left.

Even the state electricity boards would benefit enormously because not only would this do away with the man force required for meter reading but also for distribution of bills. Also, they also stand to save considerably on power thefts.

Not surprisingly, therefore, the pre-paid power forum, headed by the former Chairman of the Power Finance Corporation A Govil is confident that once they overcome the initial mindset of the consumers who may balk at the idea of paying for their power in advance, the concept will be a hit and will save the country crores of rupees which it loses to unscrupulous power thieves.