Bhubaneswar, Sept. 25: The Odisha government today asked all the four power distribution companies to release their shares under the capital expenditure programme (Capex) and take steps to strengthen the existing power distribution infrastructure.

It has also expressed concern over the tardy progress in the implementation of the power reform programmes under Capex by the power distribution companies.

As no steps have been taken over the years, the transmission and distribution (T&D) loss is still hovering around 40 per cent. “One per cent save in T&D can save Rs 80 crore,” said an official of the energy department.

Although Rs 2,400 crore has been earmarked for the programme since 2010, nothing has been spent during the last two years under Capex. According to the agreement, out of the Rs 2,400 crore, the state government will shell out Rs 1,200 crore and the rest will be borne by the power distribution companies — Cesco, Nesco, Southco and Wesco.

Energy secretary Pradeep Jena said: “The power companies have agreed to release Rs 120 crore immediately under the power reforms programme. We have asked the power companies to spend at least Rs 400 crore by the end of March. Once the Capex programme is implemented, the change in the power scenario will be visible.”

The delay in floating the tenders to buy equipment and award the contract has delayed the implementation of the power reform programme, an official said.

Of the Rs 1,200 crore, the state government has received Rs 500 crore from the 13th Finance Commission as grants, while the rest will be borne by the state. “The power distribution companies have agreed to release their share. Once they do so the state government will also release its share,” said Jena.

The Capex programme was devised to upgrade power distribution in Odisha.

“The state has already signed 30 MoUs with independent power producers of the state. With the coming up of these plans, the present generation capacity of about 4,000 MW will go up to around 40,000 MW by the end of 12th five-year plan. They will require an effective power distribution system,” an official said.

The officials of the Central Electricity Supply Utility of Odisha said the process of infrastructure strengthening under Capex had begun.

Officials of the other three power distribution companies have also said that they would do their bit to make Capex successful.