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

Madhya Pradesh
Pradesh, but functioned as agents of MPSEB under the Operation and Management
(O&M) agreement with MPSEB from July 2002.
1.4.4 Transfer of Assets to the Restructured Utilities
MP Electricity Reforms First Transfer Scheme Rules notified on 30 September 2003
laid down the principles for transfer of assets, employees, etc., for the restructured
Utilities in the State. Assets were held notionally by the new companies. In 2005, by a
Notification dated 31 May 2005, balance sheet and transfer of assets were made
effective for the respective Utilities. The O&M agreement between MPSEB and all
the five companies, ceased to exist on 1 June-2005.
1.4.5 Functions and Undertakings Retained With MPSEB
As per MP Electricity Reforms First Transfer Scheme Rules, notified on 30
September 2003, the following functions were retained with MPSEB:
i) The bulk purchase and bulk supply function, namely, purchase of electricity in
bulk from the generating companies including GENCO and supply of electricity
in bulk to the DISCOMs. MPSEB will not, however, undertake the activities of
supply of electricity to any consumer in the State from such date as the State
Government may direct in this behalf;
ii) The liabilities to the extent to be retained as per the directions the State
Government may issue in this behalf;
iii) The assets in the form of amounts, which the State Government may direct as
payable by the transferee to MPSEB to the extent and in the manner as the State
Government may consider appropriate to compensate the MPSEB for the
liabilities retained as per clause (ii) above;
iv) Cash and bank balance to be retained and shall be given to the transferees to the
extent they are associated with or related to them, or as per the direction the State
Government may issue in this behalf; and
v) Fixed deposit lying with the State Bank of India (SBI) being the amount taken as
security deposit from independent power producers (IPPs).
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