India is going to great lengths to crack down on rampant electricity theft that has long plagued its power sector, with plans to spend ₹25,354 crore to deploy metering in cities and upgrade its old distribution networks, the Ministry of Power said on Thursday.
The "Integrated Power Development Scheme" will help reduce technical and commercial losses, as well as improve collection efficiency. The earmarked funds from the government will be offset from the total estimated cost of ₹32,612 crore.
Many Indians have come to view cheap, even free, power as a right rather than a privilege. Poor political will to address the thefts, and ageing transmission lines have badly hurt local distribution companies, with as much as 40 per cent of electricity going unpaid for in several states.
Addressing power theft to reduce losses forms part of Prime Minister Narendra Modi's key policy platform to bring uninterrupted power to the entire country. Modi was previously credited with tackling power shortages during his time as chief minister of Gujarat, curbing power theft and repairing the finances of distribution companies hit hard by unpaid bills.
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, gave its approval to launch the scheme. State discoms and power departments will award the contracts for the execution of projects, which are scheduled to be completed within 24 months from date of award.