More than 23 percent of the total power generated in India was wasted during transmission and distribution (T&D) in the country in 2012-13, stated minister of state for power Piyush Goyal in Rajya Sabha on Monday.

Government agency Central Electricity Authority's (CEA) accounted the T&D loss of power at 23.4 percent.

The minister further stated that electricity distribution is the responsibility of states. The government of India acts as a facilitator in supplementing the efforts of states to provide power to consumers in an improved manner, he added.

With the aim of reducing Aggregate Technical and Commercial (AT&C) losses and improving power distribution sector of state utilities, the Union government has launched the Restructured-Accelerated Power Development and Reforms Programme (R-APDRP). Projects under the scheme are taken up in two parts in towns having population of more than 30,000 (10,000 for special category States) as per census 2001.

Goyal said that the government has notified mandatory labelling of distribution transformers to ensure distribution transformer losses are minimized. Part-A of the scheme is for establishing IT-enabled system for energy accounting/auditing and Supervisory Control and Data Acquisition (SCADA) for big cities with population of 4 lakhs and annual energy input of 350 MU. Whereas Part-B of the scheme is for upgradation, augmentation and strengthening of electrical infrastructure in project towns.

The government has notified mandatory labelling of distribution transformers to ensure that losses are minimized. Till 30 June 2014, Rs 5,348.34 crore worth T&D projects for 1,412 towns plus 72 part-A supervisory control and data acquisition projects worth Rs 1,601 crore and Rs 31,139.71 crore worth 1,244 Part-B projects have been sanctioned by the centre, the minister stated.

For the promotion of renewable energy sources in the country, the Union government is giving various fiscal and financial incentives to the states. The incentives are capital/interest subsidy, generation-based incentives, accelerated depreciation, concessional excise and customs duties.

The steps to promote renewable energy include setting up of demonstration projects, preferential tariff for purchase of power generated from renewable sources, intensive resource assessment, development of power evacuation and testing facilities, introduction of Renewable Energy Certification and Renewable Purchase Obligation etc.

Indian Renewable Energy Development Agency (IREDA), a Central Public Sector Enterprise (CPSE) under Ministry of New and Renewable Energy, also provides soft term loan for promotion of renewable energy projects. As a result of these, an installed capacity of 31,707 MW from various renewable energy sources has been achieved in the Country till 31 March, 2014, Goyal added.

Year-wise all India T&D and AT&C losses in percentage: (source: Central Electricity Authority)

Year T&D lossesAll India AT & c losses * 2004-05 31.25 34.33 2005-06 30.42 33.02 2006-07 28.65 30.62 2007-08 27.20 29.45 2008-09 25.47 27.37 2009-10 25.39 26.58 2010-11 23.97# 26.15

#Provisional , * As per Power Finance Corporation (PFC) for utilities selling directly to consumers