Report of Indian Institute of Public Administration ... - Ministry of Power

Andhra Pradesh
category. In the case of CPDCL, the company has furnished figures of overall
collection efficiencies under the three categories.
In 2004-05, the overall collection across the State was around 98 per cent.
DISCOMs need to put in extra efforts to achieve collection efficiency of 100
per cent and more to reduce the arrears.
The arrears of revenue are indicated below:
Arrears (Rs crore)
DISCOM 2001-02 2002-03 2003-04 2004-05
SPDCL 297 347 492 443
NPDCL 436 385 214 251
CPDCL 833 955 946 1,085
EPDCL 114 106 152 NA
It can be seen from the above, that over the years that there has been a
reduction in the arrears of NPDCL. However, the arrears in the other three
DISCOMs are increasing gradually. The arrears of revenue in CPDCL have
crossed Rs 1,000 crore. Though the revenue potential of CPDCL is high,
compared to the others, the management needs to pay special attention to
analyse and bring down the arrears of revenue. EPDCL has the lowest arrears,
mainly because of the generally good paying culture of the customers in the
region.
4.3.7 Government Subsidy
No cash subsidy was provided by the Government, prior to implementation of
reforms. After initiating reforms, the State Government provided good
financial support both in terms of taking over certain past liabilities and in
providing necessary revenue subsidy in cash. The financial support of the State
Government in 1999-2000 (the year of restructuring) was Rs 3,064 crore. The
details of the revenue subsidy support provided by the Government from 2000-
01 to 2004-05 are shown below:
Utility
Subsidy provided (Rs crore) during
2000-01 2001-02 2002-03 2003-04 2004-05
APTRANSCO 1,626 - - - -
SPDCL - 542 438 402 334
NPDCL - 547 353 307 342
CPDCL - 184 506 579 464
EPDCL - 288 212 227 163
TOTAL 1,626 1,561 1,509 1,515 1,303
The subsidy support has come down from Rs 1,626 crore in 2000-01 to Rs
1,303 crore in 2004-05. This is primarily due to performance improvements
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