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

TABLE OF CONTENTS
EXECUTIVE SUMMARY..……………………………………………………………….3.1
CHAPTER-1
BACKGROUND OF REFORM EFFORTS……...…………………………...………….3.5
State subsidy to the power sector ............................................................................ 3.8
Factors Leading to Restructuring of the KEB..................................................... 3.12
CHAPTER-2
A FACTSHEET OF THE REFORM EFFORTS………………..……………………...3.15
Initial Study on Restructuring of the Electricity Board...................................... 3.15
Consulting Support................................................................................................. 3.16
Regulatory Commission ......................................................................................... 3.20
Establishing CESCO .............................................................................................. 3.20
Tariff Reform.......................................................................................................... 3.21
Independent Power Producers Policy................................................................... 3.21
Recommendations of FDP Consultants ................................................................ 3.22
Distribution Margin................................................................................................ 3.23
Formation of the KTPCL as the Successor to KEB ............................................ 3.25
Status of Personnel Dispersal ................................................................................ 3.26
Establishment of Pension Trust............................................................................. 3.26
CHAPTER-3
PROGRESS OF RESTRUCTURING……………….…………………………………..3.27
General issues.......................................................................................................... 3.27
Organisational Pattern........................................................................................... 3.27
Autonomy of Restructured Companies ................................................................ 3.29
Composition of the Board of Directors................................................................. 3.29
Financial Autonomy ............................................................................................... 3.30
Continuation of the Subsidy Payments................................................................. 3.32
Metering Progress................................................................................................... 3.33
CHAPTER-4
ANALYSIS OF THE RESTRUCTURING PROCESS………………………………...3.35
Restructured organisational pattern and functional autonomy......................... 3.35
Achievements in Financial Operations by DISCOMs......................................... 3.37
CHAPTER-5
LESSONS LEARNT……………………………………….……………………………..3.40
CHAPTER-6
WAY FORWARD………………………………………………………...………………3.43