HVDS Works to Be Executed in Rural Areas by Marc

HYDERABAD: The state government will execute works relating to Andhra Pradesh Rural High Voltage Distribution System Project (APR-HVDS) by March 2012. The project is intended to considerably reduce energy losses in the agriculture sector and improve voltage profiles to agriculture pump sets.To achieve this, the government has directed DISCOMs to complete the tendering process of the project and to award the contract agreements by January 2012.The project implementation period is five years - from 2011 to 2016 - and is expected to bring down the energy losses from the estimated 25 per cent to around 10 per cent in the agriculture sector. As part of five-year action plan for APR-HVDS project, which is intended to invest `1,154.80 crore, reduction of energy loss, theft of energy, peak power loss and transformer failure in particular to the tune of over `306 crore per annum with a payback period of three and half years was dealt with. The government has also suggested power utilities officials to get feedback from farmers on the benefit and impact of the HVDS project, which was already implemented for 6.97 lakhs pump sets by availing loans from REC/PFC and to mainly focus on agriculture sector in providing adequate power supply. Further, the government has instructed all DISCOMs to submit a comprehensive report on the already completed first phase of HVDS project and voltage profiles, reduction of loss.Principal secretary of Energy Dinesh Kumar emphasised the need for utilities to effectively implement HVDS scheme in a phased manner as per schedule in rural areas which will be a boon to the farmers.Japan International Co-operation Agency (JICA) has sanctioned a loan assistance to an extent of 85 per cent of the project cost, that is, `988.80 crore on an Overseas Development Agency (ODA) package at concessional rate of interest of 0.65 per cent. The distribution companies of AP will meet the remainder of expenditure of `166 crore through the annual budget provision.The system envisages replacement of the low voltage network with a high voltage one, installation of smaller capacity distribution transformers which would lead to power supply with good voltage to pump sets. This system is best suited to meet the scattered low-density loads observed in rural areas in the state.