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

it support for financial autonomy and capacity building.
State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
The encouragement to civil society and close involvement of advocacy groups in the
reform process will help in understanding the issues and problems specific to the
power sector of the State. An effective communication strategy will be crucial for
creating a positive atmosphere for reform process and to bring about wider public
support for the reform process.
OUTSTANDING ISSUES
Generic Loans
The DISCOMs are carrying a sizeable component of generic loan liabilities of the prereform
period. Amounts of Rs 252 crore, Rs 494 crore and Rs 316 crore have been
shown against the DISCOMs of Poorv Kshetra, Paschim Kshetra and Madhya Kshetra
respectively.
In regard to these generic loans shown in the opening balance sheet of DISCOMs,
MPERC has said that unless full details are provided to it and it is proved that these
loans have been utilised towards creating assets, MPERC will consider these as
working capital loans and will allow interest to the extent of normative working
capital requirements. Unless there is clear understanding about the rationale for these
loan liabilities, the legitimate claim for expenses, etc., of the DISCOMs may defy a
practical solution.
FINALISATION OF THE ASSETS AND LIABILITIES
There are outstanding issues relating to transfer of assets, liabilities and staff, which
have not been resolved as yet. It is not easy for the State Government to come to a
settlement unless there is an equally positive response from the State Government of
Chhattisgarh. Since these are post-reorganisation matters between the two States, it
would require intervention by the Central Government to bring about an amicable
settlement of the outstanding issues.
Interim Support
As a result of reorganisation, the available generation capacity in the State has been
adversely affected. Out of total capacity of 4,260 MW of the undivided State, only
4.10