Date:04/07/2005 URL: http://www.thehindubusinessline.com/2005/07/04/stories/2005070400861300.htm

Back Transco, DisComs turn corner; notch up Rs 10,065 cr revenue

Our Bureau

Hyderabad , July 3

IN a turnaround story, the Transmission Corporation of Andhra Pradesh (APTransco) and four distribution companies have together notched up revenues of Rs 10,065 crore during 2004-2005 up from Rs 9,364 crore the previous year.

Together they have managed to achieve reasonable returns as stipulated by the Andhra Pradesh Electricity Regulatory Commission (APERC).

Addressing a press conference here on Saturday, the Chairman and Managing Director of APTransco, Ms Rachel Chatterjee, said for the first time all the five companies have ended the year with no financial loss. Significantly, all the utilities have realised the reasonable return norm prescribed by the regulator.

This financial turnaround was possible mainly due to bringing down cost per unit of sales from Rs 3.04 to Rs 2.81, cutting transmission and distribution losses, and reducing the cost of loans by swapping high cost ones with cheaper options.

To strengthen the system, the corporation has invested Rs 1,599 crore in T&D infrastructure, Ms Chatterjee said.

Referring to the increased demand during 2005, the CMD said APTransco had to meet maximum peak demand of 7613 MW compared to 7441 MW during the previous fiscal.

While the installed capacity is now at 11,134 MW due to low reservoir levels, hydel projects did not contribute much.

Given cost efficiency measures, the subsidy burden has been reduced by Rs 189 crore in 2005-2006 and it is now proposed to invest Rs 1,040 crore in rural areas of the State.

Preliminary estimates show that industrial consumption has gone up by about 21 per cent during the year. For the first time, voltage-wise tariffs for industrial category of consumers have been introduced.