Orissa CM seeks Rs.525 crore to compensate denial of R-APDRP scheme
Monday, 09 November 2009
Express news service
Bhubneshwar - Patnaik said though Orissa pioneered a reform programme and privatised the power distribution system in the state, it was denied the benefit of the APDRP.
Orissa Chief Minister Naveen Patnaik sought a special package with an allocation of Rs 525 cr from the Thirteenth Finance Commission (TFC) for three additional sectors to accelerate the pace of development in the State. Naveen met commission chairman Vijay Kelkar in Delhi on Tuesday and discussed the additional memorandum submitted by the State Government detailing the need for financial assistance for the three sectors.

The Chief Minister said that though Orissa pioneered the reform programme in the power sector and privatisation of distribution system, it is being penalised by being denied benefit from the restructured accelerated power development and reforms programme (APDRP), which has a total outlay of Rs 51,577 cr.

The State Government has a proposal to infuse Rs 600 cr for making distribution sector more efficient and sustainable. This will be utilised to improve and upgrade the infrastructure in the distribution sector.

The State Government proposal envisages sharing of the required fund with the TFC allocating Rs 200 crore. Other contributions for the proposed project include Rs 100 cr from State Government, Rs 147 cr from Gridco and Rs 153 cr from the three distribution companies.