1. Funding for a brighter tomorrow 1 POWER SECTOR CONCLAVE 14th – July - 2008 Avkash Saxena General Manager (APDRP) Power Finance Corporation Ltd. Restructured APDRP – XI TH Plan

2. Funding for a brighter tomorrow 2 APDRP-II Scheme (Proposed) Restructured APDRP-II is GoI’s initiative to reform Distribution Sector during XI TH plan. Total Programme size is about Rs 50,000 Crores Proposed to cover urban areas – towns and cities with population of more than 30,000 (10,000 in case of special category states). Projects under the scheme shall be taken up in Two Parts. Part-A will cover IT applications in distribution sector Part-B will cover System improvement, strengthening and augmentation etc.

3. Funding for a brighter tomorrow 3 APDRP-II Scheme (contd…) Part-A will include among others Consumer Indexing, GIS Mapping, Asset Mapping Metering of Distribution Transformers / Feeders, Automatic Data Logging Feeder Segregation/ Ring Fencing IT applications for redressal of consumer grievances, meter reading, billing & collection, Energy Audit Establishment of the Base Line data System

4. Funding for a brighter tomorrow 4 Part-B will include among others Renovation, modernization and strengthening of 11 kV level Substations, Transformers/Transformer Centres, Re-conductoring of lines at 11kv level and below, Load Bifurcation, Load Balancing, HVDS, Strengthening at 33 kV or 66 kV levels installation of capacitor banks and mobile service centres etc. APDRP-II Scheme (contd…)

5. Funding for a brighter tomorrow 5 Funding of Schemes/ Projects GoI will provide 100% Loan for part A of the schemes including IT applications and projects for establishing Base Line data. GoI will provide 50% Loan for Part B of the schemes (90% for special category States). The counterpart funding will be done by PFC/REC (FIs)

6. Funding for a brighter tomorrow 6 Conversion of GoI Loan to Grant The entire amount of GoI loan (100%) for part A of the project shall be converted into grant after establishment of the required Base-Line data system within a stipulated time frame and duly verified by Monitoring agency Upto 50% (90% for special category States) loan provided by GoI for Part-B projects shall be converted into grant progressively on achievement of AT&C loss reduction targets.

7. Funding for a brighter tomorrow 7 Approval Mechanism The final SRS document and the various panels of Advisor/ Consultants/ Agencies will be approved by the APDRP Steering Committee of MoP Schemes to be approved by APDRP Steering Committee of MoP based on the DPRs. MoP will approve conversion of loan to grant/ Release of grants to Utilities based on the Scrutiny of claims

8. Funding for a brighter tomorrow 8 MoP Nodal Agency (PFC/ SPV) Utilities Technical Advisors Monitoring Agencies Empanelled IT Consultants (Part-A) Empanelled IT Implementation Agencies (Part-A) Process Consultant Responsibilities Flow Dig

9. Funding for a brighter tomorrow 9 Nodal Agency PFC through its subsidiary (SPV) will act as a single window service under APDRP-II PFC will coordinate with agencies involved such as MoP, APDRP Steering Committee, CEA and various Consultants for speedy and timely completion of projects and thus assist the utilities achieving loss reduction targets As Nodal Agency, PFC will have overall responsibility of Implementation of Programme Recommendation of projects for sanction to MoP/ APDRP Steering Committee

10. Funding for a brighter tomorrow 10 Nodal Agency ( contd…) Provide necessary support to APDRP Steering Committee Scrutiny of claims & recommendation to MoP for conversion of loan to grant/ Release of grants to Utilities Preparation of biddable SRS document, model DPRs for Part A & B Scrutiny & vetting of DPRs for Part A & B Monitoring of the implementation of each project

11. Funding for a brighter tomorrow 11 Nodal Agency ( contd…) Establishment of base line data and evaluation of yearly AT&C loss by Independent Evaluators Creation and maintenance of web based MIS Empanelment of IT consultants and implementing agency to assist Utilities Capacity building of utilities through workshops etc. PFC may engage consultants for some or all of the activities, as required

12. Funding for a brighter tomorrow 12 Process Consultant Process Consultant will assist Nodal Agency for Finalization of SRS biddable document Empanelment of IT consultants for Part A Empanelment of IT Implementing Agencies for Part A Short listing and appointment of Monitoring Agencies Design & installation of Web based MIS

13. Funding for a brighter tomorrow 13 Web Based MIS Creation of Web based comprehensive MIS and monitoring system for APDRP II. It will include The objective and guideline of the program. The coverage of the program State wise DPRs submitted, sanctioned etc Project Progress Status ( Physical & financial) Scheme wise Bench mark parameters [ The input from the bench mark parameters shall be obtained primarily from the base line data collection system.]

14. Funding for a brighter tomorrow 14 IT-Consultant IT Consultants will assist Utilities To customize project level Bid Documents for Part- A, meeting the requirement of specific utility and comprising of –Utility IT mapping, –geographical area/ feeders to be covered for IT implementation, –segregation of feeders, –measures to increase customer satisfaction, –base line data collection system etc. Hand hold the utility for implementation from concept to commissioning of the project

15. Funding for a brighter tomorrow 15 IT-Implementation Agencies IT Implementation Agencies will assist Utilities To Implement the IT related schemes in the defined area/ feeders as per scope and terms and condition stipulated by the Utility/ IT Consultant. [ Utilities may appoint the IT implementing agency directly by using Panel of IT Agencies with PFC/SPV or by using services of IT Consultants following the bidding process and selecting them.]

16. Funding for a brighter tomorrow 16 Technical Advisor (s) Technical Advisors will assist Nodal Agency in following areas Technical scrutiny & vetting of DPRs (A&B), Random inspection of works (Part B) Monitoring of implementation of Part A & B Certification of work completion (A&B) Examining & recommendation for deviations Periodic reports to SPV/ MoP

17. Funding for a brighter tomorrow 17 Monitoring Agency Monitoring Agencies will act as independent third party agency for Establishing base line data (initial loss level in the system) Annual project wise verification of yearly loss levels against the benchmark parameters Assessment of claims for conversion of loan into grant for Part-A and Part-B projects Submission of report to PFC

18. Funding for a brighter tomorrow 18

19. Funding for a brighter tomorrow 19 Ministry of Power Nodal Agency (PFC/SPV) As Nodal Agency, overall responsibility of Implementation of Programme Preparation of biddable SRS document, model DPRs for Part A & B Scrutiny & vetting of DPRs for Part A &B Recommendation of projects for sanction to MoP Monitoring of the implementation of each project Establishment of base line data and evaluation of yearly AT&C loss by Independent Evaluators Scrutiny of claims & recommendation to MoP for conversion of loan to grant Release of grants to Utilities Creation and maintenance of web based portable for MIS Empanelment of IT consultants and implementing agency to assist Utilities Provide necessary support to APDRP Steering Committee Capacity building of utilities through workshops etc. PFC may engage consultants for some or all of the activities, as required. Process Consultant Finalization of SRS biddable document Assist PFC in empanelment of IT consultants & Implementing Agencies for Part A Assist PFC in appointment of Technical Advisors & Monitoring Agencies Design & installation of Web based MIS Technical Advisor (s) Technical scrutiny & vetting of DPRs (A&B), examine & recommending of deviations during implementation Random inspection of works (Part B) Monitoring of implementation of Part A & B Certification of work completion (A&B) Submission of report to PFC/ MoP Monitoring Agency Establishment of Base Line Data Annual project wise verification of AT&C level Submission of report to PFC