The World Bank is lending $250 million to help an Indian state improve the performance of its electricity distribution sector.
The distribution companies (DISCOMs) in Rajasthan provide power to around 9.5 million customers.
However, “a combination of high generation costs, inefficiencies and an accumulation of long-delayed tariff adjustments” have resulted in continuing losses for the DISCOMs, according to the World Bank.
It adds that had led to a total outstanding debt of Rs 780 billion as of July 2015.
It suggests measures such as smart and pre-paid metering, regular energy audits, unified billing systems and effective employee engagement to help reduce distribution losses.
Demetrios Papathanasiou, Lead Energy Specialist and Rohit Mittal, Senior Energy Specialist of the World Bank and Task Team Leaders for the operation said: “The different initiatives being supported under this operation are expected to bring down the operational losses, improve the realisation of revenue, improve employee engagement, improve accountability and transparency in the sector among others and steer the operational and financial health of the distribution sector on a path to sustainable recovery.”