Indian Power companies are loosing Rs. around 30,000 Cr or $6 billion + a year due to Transmission and Distribution losses courtesy outdated network, power theft, and poor billing practices as per the recent news published at Times of India. The per unit cost of electricity in India is highest in the world. According to news the per unit cost has increase by 15.5% per unit, which has raised the cost to Rs.4.50 per unit for the year 2009-10, courtesy outdated grid. The mid-term review panel reviewed the performance of 20 major states; The total distribution expenses increased to Rs. 2.03 lakh crore and is likely to go up Rs. 2.25 lakh crore this year. MTR criticized the distribution utility for their poor power procurement planning. MTR has suggested for improvement in customer service and management methods, but the real problems is the outdated grid, the government needs to focus efforts on developing Smart Grid infrastructure. Smart Grid will help reduce the transmission losses, it will help monitor the physical grid status in real time. Also the power theft can be completely eliminated using Smart Grid.
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