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

Orissa
ISSUES
• In the interest of consumers of the State, the Government of Orissa should come
forward to accept the one time settlement (OTS) scheme of Government of India
as recommended by Ahluwalia Committee for conversion of Rs 400 crore bonds
issued in favour of NTPC. The interest rate will be reduced from 12.5 to 8.5 per
cent and incentive of Rs 83 crore could be received from NTPC. Apart from the
above, there will be a longer period of repayment of the said loan, which will
improve the present financial liquidity. OERC is also recommending time and
again for the same. As DISCOMs are ready to pay upfront the equivalent amount
in cash by availing loan from banks, Government of Orissa as well as GRIDCO
should agree on the terms and conditions put by the bank. If it will not be
accepted, there will be requirement of tariff hike of 21 paise per unit, which can
be avoided without any burden to the consumers of the State.
• APDRP Cash Incentive component to the tune of Rs 52 crore to be passed on to
DISCOMs.
• Securitisation of outstanding dues of GRIDCO (BST and outstanding loan),
which is already reconciled with GRIDCO with practicable moratorium and
repayment period.
• Continuation of 30 per cent grant under World Bank Loan in line with the
Government of Orissa notification and the interest to be charged on the loan
portion at the rate at which the State Government received from Government of
India.
• Establishment of special courts for speedy disposal of the electricity theft cases.
As law and order are the duties of the State, Government of Orissa should bear
the cost of establishment and operation of such courts and police stations.
IMPROVEMENT IN PERFORMANCE OF DISCOMS
Reduction in AT&C Losses
The DISCOMs have substantially reduced AT&C losses through various measures. a.
Details of reduction of AT&C losses achieved by the three DISCOMs are as follows:
5.19