Power Department Incurring a Loss of Rs 300 Cr Annually: Nagaland CM Neiphiu Rio

Installation of smart meters in Dimapur, the commercial hub, is a challenge due to resistance from various NGOs, GBs (Gaon Burha) union and chairmen of wards and colonies.

Nagaland Chief Minister Neiphiu Rio said that the Power Department is incurring an annual revenue loss of about Rs 300 crores and there is an urgent need to revisit the communitisation (partnership between the government and the community to manage public sector institutions) of electricity management.

Chief Minister Neiphiu Rio, said this in the concluding day of the 2-day Nagaland Assembly session that concluded yesterday participating in the discussion on Power Sector Reforms by Reviewing Communitization of Electricity Management in Urban and Rural Areas under the Nagaland Communitization of Public Institution & Services Act 2002 (Act No. 2 of 2002) – Sensitization and Awareness thereof.

Appreciating the proposed reforms highlighted by Nagaland Power Minister, KG Kenye, CM Rio said these are much needed measures to ensure uninterrupted power supply to the domestic and industrial consumers.

“Due to faster urbanisation, there is not much difference in lifestyle and usage of energy intensive appliances between urban and rural areas. If the present trend of increased power demand/consumption continues, the communitised villages will be one of the major contributors for huge accumulated losses to the State in terms of revenue,” he added.

Rio pointed out that the desired progress could not be made in the installation of smart meters in Dimapur, the commercial hub, due to resistance from various NGOs, GBs (Gaon Burha) union and Chairmen of Wards and colonies.
The CM mentioned that the Installation of prepaid meter is now mandatory as per the Central Government’s notification of 26.02.2021.

“The biggest challenge now arises for 100% smart metering coverage across the state under the Revamped Distribution Sector Scheme (RDSS), which is a program launched by the Government of India to improve the quality and reliability of power supply. The State Cabinet has approved the RDSS Action Plan in totality, implementing of smart metering is becoming a challenge to the department due to resistance by the GBs and ward Chairmen”, he added.

Further, he said that the power sector is one of the major defaulting departments in revenue generation and it is important to help the department to recoup its operating cost and expenditures from its consumers to ensure stable, quality, affordable power supply so as to leverage all-round economic growth and infrastructural developmental activities in the State.

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