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

4.1.4 Commercial Viability
4.1.4.1 Receivables
State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
Extent of arrears and debt year-wise, including the dues outstanding that were
securitised or waived or rescheduled is shown in graph below. While the same has
been shown as around Rs 906 crore, for 2004-05, there has been a progressively
increasing trend during the past years wherein the arrears have increased by 1.75 times
from Rs 1,637 crore in 2001-02 to Rs 2,819 crore in 2003-04. The reduction in the
amount of arrears is due to enforcement of the provisions of Dues Recovery Act
(DRA) recently.
30 0 0
25 0 0
20 0 0
15 0 0
10 0 0
500
1814
Arrears Position-MPSEB (Rs Crs)
1637
2000-01 2001-02 2002-03 2003-04 2004-05
4.1.4.2 Financial Gap in Distribution Sector
4.44
2140
2819
906
(Source: MPSEB)
The average annual cost to supply (ACS) and ARR across various categories of
consumers in the State depict that the ACS is increasing at an annual rate of around 10
per cent taking 1998-99 as the base year. Similarly the ARR from the agricultural
consumers has dipped by around 9 per cent since 1998-99. The following table
indicates the comparative figures of ACS and ARR in the State. On actual realisation
basis in respect of agricultural category, the ARR expressed as a percentage of ACS
has gone down from 19.6 per cent in 2000-01 to 5.4 per cent in 2004-05. In respect of
domestic sector, the same has increased from 43 to 59 per cent.
Cost of Power and Recovery (Rs/unit)
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
-96 -97 -98 -99 -2000 01 -02 -03 -04 -05
Average cost of Supply 1.74 2.15 2.23 2.41 3.03 3.81 4.30 3.68 3.97 3.66
Recovery from Different Categories (ARR)
Agriculture 0.15 0.25 0.25 0.21 0.31 0.73 0.43 0.20 0.13 0.20
Domestic 0.60 0.69 0.70 0.72 1.47 1.63 1.54 1.81 2.32 2.17
Industrial 2.33 2.76 2.86 2.93 3.87 3.77 3.94 4.26 4.94 4.99
Commercial 2.53 3.18 3.50 3.60 4.14 4.93 4.98 5.31 5.80 5.57
(Source: MPSEB)