Power transmission projects: Less than 18% of Rs 10,894-crore funds utilised

By: | Updated: January 30, 2019 7:03 AM

As many as 117 projects were under implementation across the country based on grants from PSDF, and only Rs 1,894 crore had been disbursed to them till October 31, 2018.

As on November 30, 2018, NLDC was pursuing the power ministry to release Rs 3,452 crore, pending to be cleared under PSDF projects.

Thanks to slow implementation of schemes aimed to de-congest electricity transmission networks, less than a fifth of Rs 10,894 crore sanctioned by the Union power ministry from the Power System Development Fund (PSDF) since 2014 has been utilised so far.

As many as 117 projects were under implementation across the country based on grants from PSDF, and only Rs 1,894 crore had been disbursed to them till October 31, 2018.

Several projects under PSDF, sanctioned as early as 2015, have not received 30% of their sanctioned amount according to the minutes of the meeting of the National Power Committee reviewed by FE. The fund was formed to make the power transmission system more free flowing, improve the grid’s voltage profile in the grid and renovate transmission and distribution systems.

“The slow progress in implementation of the schemes is a matter of concern because it may reduce the fund release by the power ministry, which in turn create fund shortages with the national load dispatch centre (NLDC: the nodal agency for PSDF) for disbursement to the entities,” the National Power Committee observed.

As on November 30, 2018, NLDC was pursuing the power ministry to release Rs 3,452 crore, pending to be cleared under PSDF projects.

The operationalisation of PSDF was approved by the UPA government in the final days of its tenure in January 2014. As on December 31, 2013 about Rs 6,300 crore was available with PSDF. The guidelines for fund disbursement under PDSF was issued in September 2014. In March 2017, 57 power transmission projects worth Rs 7,268 crore had been sanctioned under the PSDF scheme. To provide temporary relief to the stressed gas-based power plants, about Rs 1,500 crore was also used used from this fund to supply the fuel at subsidised rates to the stranded electricity generation units in FY16 and FY17.

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