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

1.3 REORGANISATION OF THE STATE
State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
In November 2000, the erstwhile State of Madhya Pradesh was bifurcated into two
separate States, i.e., the now existing Madhya Pradesh and the newly created State of
Chhattisgarh. In place of MPEB, MPSEB and CSEB came in to existence. After
reorganisation of the State, 33 per cent of the installed generating capacity went to the
State of Chhattisgarh, whereas the level of consumption was only 21 per cent of the
total consumption of undivided Madhya Pradesh.
1.4 MILESTONES IN THE RESTRUCTURING AND REFORM PROCESS
1.4.1 Memorandum of Understanding
Memorandum of Understanding (MOU) was signed between the Government of
Madhya Pradesh and Government of India on 16 May 2000, wherein Government of
MP committed to a time-bound reform and restructuring of power sector in the State
to promote and develop an efficient, commercially viable and competitive power
supply industry which will provide reliable and quality power at competitive price to
all consumers in the State and which will support industrial development in the State.
1.4.2 Two Stage Restructuring of MPSEB
In the first stage, in November 2001, MPSEB was split into two Companies, viz.,
Madhya Pradesh Power Generation Company Limited (MPPGCL) and Madhya
Pradesh Power Transmission Company Limited (MPPTCL), which were incorporated
under the Companies Act, 1956.
1.4.3 Formation of DISCOMs
Further, in May 2002, the following DISCOMs were incorporated under the
Companies’ Act, 1956,
DISCOM Headquarters
MP Poorva Kshetra Vidyut Vitaran Company Limited
(DISCOM, East Zone)
MP Madhya Kshetra Vidyut Vitaran Company Limited
(DISCOM-Central Zone)-
MP Paschim Kshetra Vidyut Vitaran Company Limited
(DISCOM, West Zone)
4.14
Jabalpur
Bhopal
Indore
These DISCOMs were wholly owned Corporations of the Government of Madhya