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

Madhya Pradesh
Details of FRP for the period 2005-06 to 2011-12 are as under:
FY
Particulars
Payments by Govt of
MP to MPSEB
Support for operational
deficit due to tariff
being less than cost of
supply
Impact on Government of MP Finances (2006-12)
March
2006
March
2007
March
2008
4.19
March
2009
March
2010
March
2011
March
2012
(Rs crore)
Amount
1,345 1,440 1,128 1,141 1,102 453 273 6,881
7,608 777 463 409 354 0 0 2,763
Subsidy towards
subsidised domestic,
powerloom and
agriculture consumers
51 122 133 201 216 155 191 10,689
Support for capex 360 360 360 360 360 298 82 2,180
Loan from Govt of MP 174 182 172 171 172 0 0 871
Payments to Govt of
MP
744 866 1077 1247 1376 1486 1827 8,623
Electricity duty &
other levies
566 679 898 1069 1197 1327 1444 7,180
Loan interest 108 111 99 92 81 71 51 614
Loan repayment 66 71 73 78 91 82 195 656
Water charges 5 5 7 7 6 7 8 45
Gross cash outflow for
Govt of MP
1345 1440 1128 1141 1102 453 273 6,881
Gross cash inflow for
Govt of MP
744 866 7107 1247 1376 1486 1827 8,623
Net cash outflow for
Govt of MP
601 575 51 -106 -274 -1034 -1554 -1,741
(Source: FRP document)
It is evident that the State Government would be committing to a total cash outflow of
approximately Rs 6,881 crore during the seven-year period of FRP. However, there
would be an inflow of around Rs 8,623 crore to the Government of Madhya Pradesh
from MPSEB, resulting in net inflow of around Rs 1,741 crore to Government of MP.
The implementation of FRP proposals would lead to turn around of MPSEB by 2011-
12, subject to various assumptions on which the financial projections are based. The
State Government believes that although the FRP sets out goals but, in a dynamic
situation, changes may be necessitated by factors that may arise during the transitional
period. From the discussions with the State officials, it also transpires that there have
been a few updations to this plan in the past and the present FRP as mentioned above
was adopted in November 2005.