BSPHCL signs agreement with REC to strengthen power infrastructure

Bihar State Power Holding Company Limited (BSPHCL) has signed an agreement with REC Limited to further strengthen the power infrastructure, improve operational efficiencies and financial sustainability of the discoms and cut aggregate technical and commercial (AT&C) losses under the revamped distribution sector scheme (RDSS).

Under the agreement, the North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL) would get Rs 31 billion and Rs 35.25 billion respectively. Besides, Rs 19.93 billion would be allotted for smart prepaid meter work and Rs 4 billion for information technology-operational technology (IT-OT) to cut the AT&C losses by March, 2026. Of the total allotted funds, 60 per cent would be borne by the center and 40 per cent by state government. NBPDCL has set a target to cut the AT&C loss from 25.74 per cent (2020-21) to 16 per cent by 2025. Meanwhile, SBPDCL will reduce it from 36.80 per cent (2020-21) to 20 per cent in the next three years.