To supply one kw of demand, electricity has to be transported from the generating station, located some distance away. This entails transmission and distribution losses, which must be added to the demand to determine the energy to be supplied at the `door' of the power station. Unbundling of these services, from power generation would permit consumers the option to shop around.
Almost two thirds of installed power capacity in India is effectively unutilised due to T&D losses. However, there is a declining trend as T&D losses have reduced from the peak of 23% to 21% now. But these are still higher than the international average of less than 10% for advanced countries. High T&D losses are mainly due to :-
Adequate transmission channels need to be developed to reach power from one region to another, so that generation capacities sought to be built up through public and private sector private projects would be best utilised.
The government policy of 1991 already provides for private sector entry into T&D, but no specific policy or guidelines have been framed so far for the T&D sector. The government is also looking to allow private Indian and foreign companies to develop power transmission systems with equity participation.
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