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

Madhya Pradesh
2,940 MW of generation assets were left with Madhya Pradesh. The State has also not
been able to take up effective steps to increase generation through R&M activities. In
view of these uncertain circumstances, the State Government may have to be given
some weightage in the allocation of unallocated power from Central Generating
Stations on an ad-hoc basis for an interim period.
Promoting New Initiatives
1. The aim of the Reform could be achieved by improving the technical and
commercial performance of the distribution sector. More of APDRP funding
provided by MoP shall be harnessed for strengthening and improvement of subtransmission
and distribution (ST&D) systems and its commercial health. Similar
other funding arrangements can also be considered to accelerate the process.
2. Involving the public at large in controlling electricity thefts through social
awareness can further strengthen the reform process. The same can be
implemented by providing discounts in the electricity bills of the consumers
either on an area or feeder basis that helps the utilities in controlling/eliminating
thefts. It would help in creating a better public consciousness about the need for
cultivating social responsibility. Such a cultural change is extremely important
for effectively addressing the menace of electricity thefts, which is the single
largest factor responsible for overwhelming losses suffered by the Utilities, and
thereby depriving the consumers of benefits of lower tariffs. This may be done
by the Utilities in consultation with the Regulatory Commission or by suitable
amendment in the NTP.
Imperatives of the reforms demand focused attention on keeping the reforms on
course with positive support by the State Government. The gradualism in the approach
to reforms has given space to those who are opposed to reforms or those who perceive
threat to their vested interests. An effective strategy should be designed to counter the
opposition to reforms and accelerate the pace of reforms in the distribution sector.
The most significant lesson from the instant study is that power sector reform needs
continued support from the Government both in terms of financial and institutional
support and development of an independent regulatory mechanism. The State
Government has committed itself financially for restructuring the power sector during
the transition period to enable the Utilities to achieve a turnaround. The State should
commit on the reform choices as regard competition, privatisation, etc. Discussions
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