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

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State <strong>Report</strong>s (Vol.-III)<br />

Study on `Impact <strong>of</strong> Restructuring <strong>of</strong> SEBs’<br />

7.3 SUGGESTIONS FROM THE STATE GOVERNMENT AND SUPPORT<br />

EXPECTED BY THEM<br />

7.3.1 Setting up <strong>of</strong> a Mechanism for Price Regulation <strong>of</strong> Fuel<br />

Absence <strong>of</strong> regulator for the fuel is impacting the cost <strong>of</strong> fuels, which lead to<br />

increased cost <strong>of</strong> power generation. Need <strong>of</strong> regulator and transparent public<br />

participation in fuel sector pricing has been emphasised by the State Government.<br />

7.3.2 Green <strong>Power</strong><br />

At present cost <strong>of</strong> generating non-conventional energy is high. The capital subsidy and<br />

the tariff related issues need a fresh look in order to incentivise the use <strong>of</strong> small hydel<br />

power in the portfolio <strong>of</strong> power purchase.<br />

7.3.3 Regulatory Understanding<br />

There appears to be a mindset issue with regard to the role, which the MPERC is<br />

required to perform. The State Government feels that MPERC should not interfere in<br />

day-to-day affairs <strong>of</strong> the power companies beyond a point. The State Government<br />

expressed that in order to protect the interest <strong>of</strong> companies, the ground realities should<br />

also be looked in to by MPRC. There is a need for greater communication between the<br />

stakeholders to overcome the same.<br />

MPGENCO is finding it difficult to get loans from FIs and PFC. The State Pollution<br />

Control Board (SPCB) is also imposing restrictions on running <strong>of</strong> some <strong>of</strong> the power<br />

units because <strong>of</strong> high level <strong>of</strong> emissions from them. Such emissions are attributable to<br />

poor quality <strong>of</strong> coal and limitation <strong>of</strong> space for extension <strong>of</strong> Electrostatic Precipitator<br />

(ESP) fields. In case <strong>of</strong> joint venture projects like Satpura <strong>Power</strong> House, consent <strong>of</strong><br />

the partner State has delayed the taking up <strong>of</strong> R&M activities. This and similar other<br />

issues relating to pollution control would require intervention and coordination <strong>of</strong> the<br />

concerned Central ministries.<br />

The State Government feels that the coal and fuel linkages mechanism should also be<br />

strengthened in respect <strong>of</strong> the State power sector project also. Government <strong>of</strong> Madhya<br />

Pradesh expects a proactive role by the <strong>Ministry</strong> <strong>of</strong> <strong>Power</strong> (Government <strong>of</strong> India) in<br />

extending more support to the State by way <strong>of</strong> better coordination with other Central<br />

ministries/departments in quick redressal <strong>of</strong> some <strong>of</strong> the pending issues with the<br />

concerned ministries.<br />

4.52

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