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

Madhya Pradesh
• A number of MOUs were signed with the Independent Power Producers (IPPs,
22 Nos.). The same, however, could not materialise probably due to poor paying
capacity and payment security issues with the State.
• Under the new arrangements for power procurement the MPPGCL is required to
sell power to MP Power Trading Company Limited (TRADECO) as a single
buyer model. TRADECO will supply bulk power to DISCOMs.
• Though, during the year 2004-05, the targets set by MPERC have almost been
achieved by GENCO, the shortage of peak and energy continues in the State. In
order to meet the demand efforts should be made to create additional generating
capacity in the State.
• More than 60 per cent of the generating stations in the State have served for a
period of 25 years or more. The generating stations need frequent overhaul and
are in urgent need of renovation and modernisation. The R&M activities have not
received adequate priority and the funds allocated for R&M actually got reduced
gradually from Rs 13.18 crore during 2000-01, Rs 2.93 crore during 2001-02,
and Rs 1.64 crore during 2002-03 to Rs 0.71 crore during 2003-04.
• The Commission in its tariff order dated 10 December, 2004 has accorded due
priority and allowed Rs 140.31 crore under R&M of generating stations, but the
GENCO once again failed to utilise the approved amount. Vide its tariff order
dated 25 January 2006 the Commission has approved Rs 131.91 crore under this
head. MPGENCO should spent adequate amount as approved by the
Commission, on R&M activities to ensure the higher availability of plants.
• MPGENCO has recorded better performance in respect of technical parameters
such as PLF, specific oil consumption and auxiliary consumption except the
station heat rate.
3. TRANSMISSION
MP Power Transmission Company Ltd (MPTRANSCO) is a Government owned
Company, and was also notified as State Transmission Utility (STU) on 17 May 2004.
Under MPSEB, the company had been continuing to perform the electricity bulk
purchase and bulk supply function till 9 June 2006 as per notification of Government
of MP. From 03 June 2006 a new power trading company, TRADECO has come into
existence in the State and all the existing power purchase agreements (PPAs) of
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