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

Madhya Pradesh
1.5.1 Key Features of FRP
(a) Balance liability related to SLR bonds to be paid by Government of MP;
(b) The power purchase and fuel related liability already taken over by
Government of MP by issue of MSA bond and cash payment to be treated
as equity in books of MPSEB;
(c) Conversion of overdue liability of Government of Madhya Pradesh as
equity in books of MPSEB;
(d) Energy input to the system to increase at a cumulative annual growth rate
(CAGR) of 8.1 per cent;
(e) Sales to increase at CAGR of 12 per cent;
(f) To reduce AT&C losses from 51.6 per cent in 2004-05 to 30.1 per cent in
2011-12, which includes that “collection efficiency” to increase from 85
per cent at present to 96 per cent by 2011-12;
(g) Capital investments [including interest during construction (IDC) and
other expenses capitalised] of around Rs 18,825 crore assumed in the
system as per details below:
• Generation – Rs 8,451 crore
• Transmission – Rs 3,805 crore
• Distribution – Rs 6,496 crore (including investment to the extent of
Rs 2,700 crore for 100 per cent rural electrification as per National
Electricity Policy).
The year-wise average tariff hike projected is as under:
Year-wise
overall tariff
hike needed (%)
March
2007
March
2008
March
2009
4.17
March
2010
March
2011
March
2012
9.3 3.4 5.9 5.6 3.5 3.0
1.5.2 Support from Government of Madhya Pradesh
The FRP has assumed cash and financial support from the State Government over a