Nagaland Chief Minister, Neiphiu Rio speaking at the 21st NERPC meeting in Kohima on February 4. (Morung Photo)
60% of State’s internal power transmission not covered by central schemes
Morung Express News
Kohima | February 4
60% of Nagaland’s intra-state power transmission is not covered by central schemes, informed Nagaland Chief Minister, Neiphiu Rio today.
The Nagaland CM said this while speaking at the 21st North East Regional Power Committee (NERPC) meeting at Hotel Vivor Kohima on February 4.
Rio, who was recently appointed as the Chairman of the NERPC, said that due to this, the State is unable to effectively manage its intra-state transmission system. He informed that a detailed proposal for reliable communication of the 66 kv systems in Nagaland has been submitted to NERPC to address this issue.
While stating that reliable communication is a crucial factor for both system and market operations in the power sector, Rio requested the forum to recommend the proposal to the Ministry of Power for funding of the project under the Power System Development Fund (PSDF) as a special dispensation.
While appreciating the implementation of the North Eastern Region Power System Improvement Project (NERPSIP) undertaken by the POWERGRID through the initiative of the Ministry of Power, Rio urged the agency to expedite the work as Tranche-I of NERPSIP is already running behind timeline of completion schedule.
“Unless it is expedited, the sanction and implementation of Tranche-II will be delayed” added Rio.
The Nagaland CM also impressed on the need for timely payment of dues and outstanding bills to the Central Public Sector Undertakings (CPSUS) like NEEPCO, PGCIL and other power generating companies. This, he stated should be taken seriously by the Distribution Companies (DISCOMS) and State Governments.
He also noted that many DISCOMS are in financial distress as the gap between the cost of supply and realisation is increasing due to which the distribution utilities are overburdened with accumulated outstanding dues.
“On this contentious issue, we all can see that the late payment surcharge is a huge component of the debt, which otherwise is actually not a part of the tariff but a commercial obligation” said Rio.
To this effect, he suggested that a compromised arrangement be worked out suiting all stakeholders in the form of freezing the late payment surcharge and apply the securitization principle of the year 2002 on the same issue.
The Chief Minister also observed that due to the geological uncertainties, commissioning of hydro projects are being delayed because of which the tariffs are comparatively higher. Nonetheless, Rio opined that since hydro projects are the most potential area of power generation, the executing agencies were requested to take up the challenge and put up all efforts for timely commissioning of the projects.
Also mentioning the concept of OPEX model of funding in the power sector by the Centre, Rio was of the view that the OPEX model of funding for the NE states may be studied properly at this stage.
Rio said that the concept may look good at face value where market principles apply; however, he maintained that this ignores the fact that Nagaland and other NE states were decades late in accessing proper funding from the Centre for infrastructure funding.
Meanwhile, pointing out that only a little infrastructure could be created at high cost in the NE region as governance was focused mainly on handling law and order problems for decades, Rio suggested that all NE states should join hands to ask the Government of India to provide additional financial assistance to narrow down the development gaps that exists in comparison with the mainland.
