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

medium term. The impacts of implementation of FRP are:
State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
(a) Provide cash support of approximately. Rs 2,180 crore (2006-12) for the planned
future capital expenditure of MPSEB in the form of equity;
(b) Provide a cash support of approx. Rs 2,763 crore (2006-12) to bridge the
operational deficit (tariffs being less than cost of supply);
(c) Provide loan assistance to an extent of approx. Rs 871 crore (2006-12) to meet
the deficit in cash flows;
(d) Take over of the contingent liabilities of MPSEB (estimated to be around Rs
848.37 crore as on 31 March 2004) and consider them as equity in the books of
MPSEB as and when they devolve;
(e) Pay bills of Government of MP departments/local bodies in cash on monthly
basis on time; and
(f) Provide guarantee for payment of terminal benefits to employees in case the
same is not considered passed through in tariffs by MPERC for recovery from
consumers.
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