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

Orissa
pre-condition for the deal. GRIDCO had to liquidate the entire loan and also make an
escrow arrangement for payment of the current dues in full.
Adjustment of Rs 343 crore by Government of Orissa while vesting the transmission
and distribution assets in GRIDCO severely affected its liquidity position. This
amount was payable by the State Government to OSEB/GRIDCO as subsidy (Rs 301
crore) and energy charges (Rs 42 crore) due from Government Departments.
GRIDCO continued to carry out un-remunerative activities such as rural electrification
work on behalf of the Government of Orissa without any subsidy support from the
Government, either capital or revenue.
DISCOMs did not agree to take over the dues receivable from State PSUs and State
Government Departments towards power supply and the same were retained with
GRIDCO. GRIDCO is yet to receive the dues.
TRANSFER OF ASSETS
Restructuring was done in two steps through the instrumentality of Transfer Schemes
framed under the Orissa Electricity Reform Act, 1995. Under the first Transfer
Scheme (effective from 1 April 1996) the assets, liabilities, proceedings and personnel
of the erstwhile OSEB were transferred to OHPC (for hydel generation), and
GRIDCO (transmission and distribution). The second Transfer Scheme (effective
from November, 1998) further transferred the distribution related assets, liabilities,
proceedings and personnel of GRIDCO to four wholly owned companies of GRIDCO.
Details of Revaluation done in Transfer Scheme dated 1 April 1996
(Rs crore)
Book value of T&D assets 1103.2
Interest and expense capitalised 97.5
Total 1200.7
Uplift in value of assets 1120.0
Total 2320.7
Depreciation 363.0
Net fixed assets of GRIDCO as on 1 April 1996 1957.7
Total Revaluation
Uplift in assets 1120.0
Further adjustment 74.0
Total 1194.0
Adjustment
Subsidy due to OSEB 301.2
Electricity charges receivable from Government 39.2
Reduction in O&M stock 50.6
Total (A) 391.0
5.11