Latest news with #RevampedDistributionSectorScheme
The Hindu
2 days ago
- Business
- The Hindu
Electricity consumers in Coimbatore wait for new service connection for nearly nine months
Several applications for new electricity connections are said to be kept pending for want of distribution transformers in Coimbatore district. Consumer body, the Coimbatore Consumer Cause, has written to the Tamil Nadu Electricity Regulatory Commission (TNERC) to direct the Tamil Nadu Power Distribution Corporation to provide the service connections on time. Secretary of the consumer body K. Kathirmathiyon claimed that applications were pending for more than nine months in Coimbatore district for new service connections. It is learnt that almost 140 distribution transformers were needed in Coimbatore alone to replace the old ones. He said that as per the Tamil Nadu Electricity Distribution Standards of Performance Regulations, 2004 , service connections should be given in 90 days for works involving extension and improvement. If the connections were not provided within the stipulated time, the licensee should pay the consumer a maximum of ₹2,000 for the delay period. However, if an application form was pending for 10 days or 400 days, the compensation amount was only ₹2,000 and that was the reason for the licensee to neglect the delays, he alleged. According to Mr. Kathirmathiyon, there are nearly '1,600 distribution transformers kept idle even now in the stores of the Licensee for years and left to gather dust. These DTs could not be used since they were allotted to the Central Government's Revamped Distribution Sector Scheme (RDSS),' he said. While there was a stock of transformers on one hand, consumers were waiting for new connections on the other because of non-availability of transformers, he said. 'Despite repeated orders, the licensee failed to provide connections within the time for want of equipment / materials – which are totally unacceptable,' he said.
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Business Standard
2 days ago
- Business
- Business Standard
Goldman Sachs upgrades Schneider Electric Infra to 'Buy'; sees 21% upside
Goldman Sachs upgraded Schneider Electric Infrastructure Ltd to a 'Buy' rating from 'Sell', citing a sharp expansion in India's medium-to-long-term total addressable market (TAM) for power distribution equipment. The brokerage has also raised its 12-month target price to ₹910 per share, implying an upside potential of around 21 per cent. On Thursday, the stock fell as much as 2.42 per cent to ₹765 per share. The stock pared losses to trade 2 per cent lower at ₹764 apiece, compared to a 0.04 per cent decline in Nifty50, as of 11:10 AM. The upgrade comes on the back of rising electricity demand, widening power deficits, and the urgent need to upgrade India's power distribution infrastructure, the global brokerage said in a report on June 16. Goldman Sachs now expects India's power transmission capital expenditure to exceed $550 billion by the financial year 2050 (FY50), nearly 30 per cent of the country's overall energy transition capex requirement. Track LIVE Stock Market Updates Here An inflection in power demand growth is likely to elevate the importance of continued grid expansion and upgrade, including low- and medium-voltage distribution networks, transformers, switchgear and intelligent breakers, the brokerage said. It added that Schneider Electric's upcoming capacity expansions in circuits and breakers place it in a strong position to benefit from this structural trend. Schneider Electric is expanding its Vadodara switchgear plant by adding 6,000 panels to the existing 8,000 panels capacity, and scaling up its Kolkata breakers plant from 5,000 units to 50,000 units. These initiatives, along with margin improvement and order inflow momentum, support the revised earnings estimates, Goldman Sachs said. The firm now forecasts a 27 per cent earnings CAGR for the company during FY25 to FY28, compared with its previous estimate of 8 per cent. The order inflow CAGR is also raised to around 31 per cent from 15.5 per cent earlier. Gross margins rose 150 basis points year-on-year in FY25 to 38.2 per cent, driven by better pricing, product mix and cost efficiencies. Goldman Sachs now expects gross margins to improve further to 39.6 per cent by FY32. The research note highlights four key reasons for the upgrade: a significantly higher TAM with increased market share expectations, a stronger margin outlook, potential for valuation re-rating, and government support through schemes such as the Revamped Distribution Sector Scheme (RDSS). Since April 2024, Schneider Electric stock has underperformed broader markets, falling 4.3 per cent while the BSE Sensex gained 11.9 per cent. However, with rising urgency to reduce power distribution losses, currently at around 18 per cent of domestic supply, the brokerage expects the company to be a major beneficiary of distribution-led grid investments.
New Indian Express
2 days ago
- Business
- New Indian Express
AI to improve efficiency in Karnataka's power sector
BENGALURU: The energy department is looking at utilising Artificial Intelligence (AI) to bring in professionalism in operations and management of electricity distribution to improve Karnataka's power sector. Energy Minister KJ George told the media on Wednesday that the department will use AI in future, but asserted there will be no job cuts. AI will help only to a certain extent, he said. Officials said AI will help in better skill management, and to control financial and power losses. AI is already being used to monitor power supply to make generation projections for the future. George said the Central government had in-principle agreed to give two years time to implement the Revamped Distribution Sector Scheme (RDSS) to give smart meters to all consumers at low rates. At present, the scheme ends in December 2025. He said if this is done, smart meters will be distributed to all consumers at nominal rates, like in other states. Implementation of smart meters was discussed with Union Minister for Power Manohar Lal Khattar recently, he added. The plan to levy 2 per cent cess on government departments that have to clear pending dues of around Rs 10,000 crore was okayed. The list of defaulting agencies include the Rural Development and Panchayat Raj and Urban Development departments, and BWSSB. George said smart meters cannot be given to consumers at nominal rates, unless all dues of energy supply companies (Escoms) are cleared. This is one of the conditions of the Central government. He said a proposal will be placed before the cabinet to include 40,000 farmers into the Kusum-C bracket, pending clearance for implementation of the Kusum-B scheme. This has been discussed with the chief minister and an additional Rs 10,000 crore will be needed. Energy department officials said transmission and distribution losses are being reduced from the existing 2.9 per cent and 9 per cent to 2.2 per cent. KPCL Managing Director Pankaj Kumar Pandey said three 765kV sub-stations are being set up in Central, North and South Karnataka, and 37 sub-stations of 400kV capacity each are being set up across Karnataka. All installations will be completed in four years. High performance conductors are being set up across existing electricity corridors to strengthen carrying capacity and reduce distribution losses. Three 765kV sub-stations are being set up in Central, North and South Karnataka, and 37 sub-stations of 400kV capacity each are being set up across Karnataka. All installations will be completed in four years
Time of India
3 days ago
- Business
- Time of India
Karnataka bats for smart meters for all consumers
Bengaluru: After rolling out smart meters for temporary and new connections, the state govt is considering replacing the existing electricity meters with the new device after obtaining approval from the cabinet. Revealing the state's wish to avail the benefits under the central govt's Revamped Distribution Sector Scheme (RDSS), which mandates the installation of smart meters at every installation, energy minister KJ George said Wednesday that a proposal will be placed before the cabinet in the coming days. Karnataka is one of the two states that have not availed RDSS to date for the installation of smart meters. Even though the proposal to avail benefits under RDSS has been pending since 2021, the successive state govts have been non-committal as it would result in an additional burden on the consumers and state exchequer in the form of arrears from various stakeholders. Currently, barring Karnataka and Telangana, all states have been covered under the RDSS scheme. George explained that the deadline for the RDSS scheme is Dec, and the state is planning to avail its benefits. "If the cabinet approves the decision, Karnataka must mandatorily install smart meters in all installations," the minister said. The Centre will extend a 15% subsidy for installing the smart meters and another 60% subsidy to improve the transmission infrastructure. With the subsidy, the cost of smart meters is likely to come down from Rs 5,000 to less than Rs 1,000. MSID:: 121934701 413 |
The Hindu
3 days ago
- Business
- The Hindu
Karnataka gets two years to become eligible for RDSS
The Central government has given the Energy Department two years to become eligible for the Revamped Distribution Sector Scheme (RDSS) by recovering all pending arrears of electricity supply companies (escoms), Energy Minister K.J. George said on Wednesday. When Union Minister of Power Manohar Lal Khattar was recently in Bengaluru for an event, he advised the Energy Department to prepare a road map for the recovery of pending dues. Karnataka is one of the very few States that missed out on RDSS as escoms were owed over ₹8,500 crore from various government departments at the time. 'Then, we did not even try as we knew there was no time and we were not eligible. But now, we have been given two years and we want to use the scheme as it would greatly benefit our escoms. They will get 60% subsidy (around ₹10,000 crore) for building the distribution network. The Union Minister has asked us to get the urban local bodies to impose a 2% cess to aid in the repayment of power dues,' Mr. George explained. Eligibility for the scheme will also help consumers who install smart meters as a 15% subsidy (up to ₹900) will be provided by the Union government. It is now mandatory for all new and temporary connections to install smart meters in the State. Mr. George said that he also wants to propose to the Cabinet that smart meters be installed in all government offices. 765 kV substations to be set up In a bid to enhance the transmission network of the State, Karnataka Power Transmission Corporation Limited (KPTCL) will set up three 765 kv substations - one each in Central, North, and South Karnataka. 'We will be one of the few States to have these substations,' said Pankaj Kumar Pandey, managing director, KPTCL. He further said that in urban areas where getting right of way is a problem, existing transmission corridors are being used to replace conductors with high performance conductors with double or four times the capacity. High towers, which will occupy less space and leaves less footprint are also being set up to reduce transmission losses. These are all part of a blueprint to increase the transmission capacity in the next five years.
