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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
The DISCOMs must therefore enhance their enforcement initiatives by forming strong
a legal task force to expedite such efforts. Adequate protection and empowerment
should be provided to employees involved in detection of cases of malpractices,
electricity theft, verification of consumer connections, etc. Adequate authority and
responsibility should be assigned to employees to perform their task.
8.9.5 AT&C Losses Reduction Targets
The percentage of T&D losses from 1995-96 to 1998-99 have been shown to be in the
range of 19 to 21 per cent and thereafter as 31.94 per cent in 1999-2000, 47.18 per
cent in 2000-01 and further showing a very slow reducing trend (43.48 per cent in
2004-05). The Commission, under the MYT framework, has set a loss reduction
trajectory for the individual DISCOMs. While the target for 2005-06, as prescribed by
the Commission, has been achieved by the Western and Central DISCOMs, the same
has not been achieved by the Eastern DISCOM (a gap of 3.23 % is yet to be met).
8.9.6 Generic Loans
The DISCOMs are carrying a sizeable component of generic loan liabilities of the prereform
period. Amounts of Rs 252 crore, Rs 494 crore and Rs 316 crore has been
shown against the DISCOMs of Poorv Kshetra, Paschim Kshetra and Madhya Kshetra
respectively.
In regard to these generic loans shown in the opening balance sheet of DISCOMs,
MPERC has said that unless full details are provided to it and it is proved that these
loans have been utilised towards creating assets, the Commission will consider these
as working capital loans and will allow interest to the extent of normative working
capital requirements. Unless there is clear understanding about the rationale for these
loan liabilities the legitimate claim for expenses, etc., of the DISCOMs may defy a
practical solution.
8.9.7 Promoting New Initiatives
i) Distribution is the ultimate link in the power system and is nearest to the
consumers. The security, reliability and quality of power supplied to consumers
eminently rests with the state of the distribution system and its performance. One
of the main important aims of the power sector reforms is to bring about visible
improvements in terms of commercial viability, improved availability of power
4.58