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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
section 17(3) and (4) of the EA, 2003, which says that any such assignment of revenue
of the DISCOMs to MPSEB shall require prior approval of the MPERC. This aspect
needs to be examined by the Ministry of Power.
1.8.1 Validity of the Cash Flow Mechanism
The CFM will be valid till the cash deficit in the revenue earnings and expenditure
requirements is resolved to the satisfaction of all the companies, or issue of further
directives from the State Government.
Once the DISCOMs are in a position to meet all their expenses including power
purchase, pooling of the revenue earnings with MPSEB will not be required and the
State Government, by an order, will terminate this mechanism.
1.9 THE REFORM EXPECTATIONS
The process of reforms and restructuring has been initiated with an aim to make the
Madhya Pradesh power sector self-sustainable and meet consumer expectations of
quality and reliable power at an affordable rate. The MPSEB, a large entity, has been
restructured with a view that the smaller entities would be easy to manage by
providing them autonomy and also to work as a responsible corporate structure.
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