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| ASEB turns around, looks at profit 'soon' |
| Supratim Dey / Kolkata/ Guwahati Feb 12, 2010, 00:02 IST |
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Due to sustained and efficient power sector reform by the Tarun Gogoi-led congress government for the past few years, the loss-making Assam State Electricity Board (ASEB), which had become almost bankrupt, today is “on the verge of making profit.” Moreover, if the power minister of the state Pradyut Bordoloi is to be believed, the state might be soon “power surplus.” “The ASEB, which has been making losses and had even become bankrupt in past and was not in a position to buy a packet of alpines, is today on the verge of making profit,” said Bordoloi.
The turnaround in the balance sheet of ASEB could be brought as cumulative loss of power could be arrested through sustained investment in augmenting the system.
In last nine years, the state government had invested more than Rs 2,000 crore for capacity augmentation and infrastructure upgrade of the power sector. The absorption capacity of transmission and distribution network of ASEB has increased from 550 MW in 2005 to 1,400 MW now following power sector reforms and huge investment, said Bordoloi. “If our system cannot absorb more power, then there is no point either buying or generating more power. So we went for sustained investment for our system augmentation and I am happy to say that today we are in a position to absorb 1,400 MW of power,” he said.
In 2005, ASEB lost almost 50 per cent of power due to poor transmission and distribution network, besides commercial factors. According to Bordoloi, one per cent of loss in 2005 amounted to almost Rs 1. 5 crore and he termed the total loss as a “colossal” one. The aggregate loss has now come down to 3 per cent. In 2004, as a part of reforms, ASEB was unbundled into five government companies - three distribution companies, one power generation company and one transmission company. Bordoloi said that the power sector reforms with loan from Asian Development Bank (ADB) were so successful and efficient that the bank recently agreed to sanction second leg of loan amount amounting $ 200 million loan to Assam power department.
The new loan amount would be used to partially fund Assam’s $ 764 million Assam's power sector investment plan by 2014.
Bordoloi further assured the industry of the state that his department was augmenting the system to implement ‘ring phase transmission system’ for uninterrupted power supply to all the industrial parks and estates in Assam.
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