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

Orissa
VIEWS OF THE STATE GOVERNMENT ON IIPA QUESTIONNAIRE
1. The main drivers of power sector reforms in order of priority are as follows:
(i) Inability of State sector to finance needed expansion/modernisation.
(ii) Poor performance of SEB in terms of high cost, inappropriate pricing,
inadequate expansion, unreliable power supply, etc.
(iii) Need to remove subsidies to the sector in order to release the State’s
resources for other priorities.
(iv) Attract private sector participation in the sector.
2. The desired outcomes and deliverables of the reforms (in order of priority) are as
follows:
(i) Better service quality for consumers.
(ii) More affordable access to electricity for consumers.
(iii) Improvement in the Government’s fiscal position.
(iv) Redefining the role of public sector.
3. The financial restructuring implemented through valuation of assets and their
transfer to new entities like GRIDCO and OHPC through enactment made by the
State Government. However, in case of privatisation of distribution system it was
transferred through transfer scheme, to bidders selected through competitive
bidding.
4. The existing liabilities of OSEB were settled through transfer of the same to the
books of the new entities.
5. Details of Government support
(a) Equity - Rs 793 crore (GRIDCO Rs 493 crore + OHPC Rs 300 crore)
(b) Guarantee - About Rs 1,700 crore to GRIDCO and OPTCL.
(c) Subsidy - Nil
(d) Loans - Rs 704 crore (GRIDCO, Rs 180 crore - OHPC, Rs 524 crore)
(e) APDRP incentive component - Nil
(f) Any other firm support - State Government have issued bonds to the extent
of Rs 1,102.87 crore to NTPC towards power purchase cost of GRIDCO.
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