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Integrated Power Development Scheme Decoded

Integrated Power Development (IPDS) scheme launched by Modi Government is basically a new avatar of Restructured Accelerated Power Development Programme of UPA. The IPDS is one of the flagship programmes of the Ministry of Power and will be at the core attempt to ensure 24×7 power for all. The Scheme, announced in the Union Budget 2014-15, aims at strengthening of sub-transmission network, Metering, IT application, Customer Care Services, provisioning of solar panels and the completion of the ongoing works of the Part -A of the Restructured Accelerated Power Development and completion of the Reforms Programme (R-APDRP).

impds

 Why we need this? 

Electricity is the most important factor in the economic growth of any country. And the most critical segment of Power Sector chain including Generation, Transmission and Distribution, is the Distribution Sector. Efficient management of the distribution of electricity sector is mandatory as it acts as an interface between the utilities and the consumers. The real challenge in the power sector today lies in efficiency.

Keeping in mind the importance of requirement for continual up-gradation and creation of infrastructure for electricity distribution, Prime Minister Narendra Modi has launched the Integrated Power Development Scheme in Varanasi.

Under this scheme, the State Governments with the support of the Central Government will attempt to ensure 24/7 power for all.

 What it will do? 

The scheme has been launched with an outlay of Rs. 44,011 crore for 12th and 13th plans. All discoms including private discoms and state power departments are eligible to get financial assistance under it.

  • Strengthening of sub-transmission and distribution network in the urban areas;
  • Metering of distribution transformers /feeders / consumers in the urban areas;
  • IT enabled energy accounting / auditing system will be established.
  • Roof-top solar panel will be installed in government buildings.
  • Improvement in billed energy based on metered consumption and improvement in collection efficiency.
  • The scheme will help in reduction in AT&C losses (Aggregate Technical & Commercial).

 Work Timeline 

  • Integrated Power Development Scheme (IPDS) will extend financial assistance against capital expenditure to bridge the gap in sub transmission & distribution network and metering in urban areas.
  • The focus of IPDS is strengthening of sub-transmission and distribution network;
  • metering of distribution transformers /feeders /consumers and IT-enablement of distribution sector and strengthening of distribution network in the urban areas.
  • Government of India will provide budgetary support of Rs. 45,800 crore over the entire implementation period of IPDS. (Out of the total amount Rs 1,067 crore has been sanctioned for Uttar Pradesh including Rs 572 crore for Varanasi.)

 Differences between IPDS and earlier schemes for urban distribution sector 

  • Unlike earlier distribution scheme for distribution strengthening like R-APDRP which was limited to towns with 30000 or more population (10000 or more for special category states) as per Census 2001 IPDS covers the complete urban area of distribution utilities.
  • Unlike R-APDRP scheme , where conversion of loan into grant was extended upto 50% maximum and 90% max (for special category states) subject to reduction in AT&C loss , IPDS provides 75% max ( 90% max for spl category states) (included 60% upfront ( 85% for special category states) with additional grant linked to achievement of milestones prescribed under the scheme.

 Conclusion 

IPDS is indeed a positive step towards a brighter future which will help enhance the economic growth of India. Electricity is vital for the overall development of the nation, and the Union Government by launching this scheme is all set to push India in the right direction of development.

References: modi.in, Ajay Srivastava Blog, MapsofIndia and other articles