Replying to a question from Abdus Subhan of Jamaat-e-Islami, he said the PDB incurred a loss of Tk 375.10 crore in 2002-03.

He identified purchasing of power from private independent power producers (IPPs) as a major reason of huge loss of the PDB.

"In view of increased demand we have to purchase power from IPPs at a price, which is higher than the PDB's selling price as per agreement," he said.

Dhaka Electric Supply Authority (DESA) incurred a loss of Tk 13.35 crore during the period. The amount of the loss incurred by Rural Electrification Board (REB) was Tk 45.62 crore, he said.

Replying to another question the state minister attributed the loss of DESA to both technical and non-technical reasons that include illegal connection, meter bypass, meter tampering, under billing and non-billing.

He said the government has taken various measures to reduce the loss of power sector concerns. These include regular disconnection drive and mobile court to check illegal use of electricity and efforts to realise arrears of government and private organisations.

Besides, he said, steps have also been taken to reduce the loss of REB by inspection of transmission lines, proper maintenance and repair of transformers and distribution lines and increasing bill collection rate.

Replying to another question Mahmood said systems loss in power sector decreased to 25.69 per cent in 2002-03 from 27.97 per cent in the previous fiscal. He said ongoing reforms helped in reducing systems loss.