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Technology firms are set to cash in on the Union government’s push to reform the country’s power distribution network, as India lines up at least $2 billion (Rs9,200 crore) to help cap energy losses through use of information technology (IT), industry experts said.

The government has launched a Rs 50,000 crore plan to cut power distribution losses, with one-fifth of the funds devoted to using IT at state-run distribution utilities.

Under the power reforms scheme, many domestic and global IT firms have been empanelled to serve as consultants or act as implementation agencies to distribution firms.

States such as West Bengal and Rajasthan have already awarded IT projects, while others, including Madhya Pradesh and Maharashtra, are in the process of doing so, government officials said.

IT work will typically involve setting up data centres, geographic information system mapping, and entail applications for reading meters, billing and collection, energy accounting and auditing and consumer grievance redressal.

Around 30% of the power produced in the country is lost in transmission and distribution annually due to pilferage and technical snags, compelling the Union government to invest in using IT to identify the losses.

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