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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
6. The State is surplus in power and there is no statutory power cut in the State
since 1993.
There has been no tariff hike since 2001.
BENEFITS OF POWER SECTOR REFORMS
(Comments of the Member of the ‘Group of Experts’ are given in bold letters
within brackets)
(i) Consequent to power sector reforms, T&D losses have been brought down from
50.6 per cent in 1995-96 to about 41.4 per cent in 2004-05.
(ii) Tariff is determined by an independent agency, namely Orissa Electricity
Regulatory Commission after a process of public hearing. Although there was
some increase in retail tariff in the initial years of reform, this was much less
compared to the tariff hike in pre-reform period. There has been no revision in
retail tariff since 1 February 2001. The tariff in Orissa is one of the lowest in the
country.
(iii) The power deficit scenario in the State has been transformed to a power surplus
one during the post reform period. Orissa is now selling power to States like
Haryana, Rajasthan, Gujarat, Maharashtra, Chhattisgarh, Punjab, etc., through
PTC and NTPC Vidyut Vyapar Nigam.
(iv) Each year, the State Government was providing huge subsidy to OSEB prior to
Reform. This has been stopped since 1 April 1996.
(v) As a result of reform, the State power Utilities could mobilise resources from
financial institutions for investment in power sector. Upper Indravati Hydro
Electric Project with a capacity of 600 MW was commissioned in 1999-2000
after the reform was undertaken with loan assistance from PFC.
(vi) The three DISCOMs, namely WESCO, NESCO and SOUTHCO are able to pay
monthly BST in full for the last three years. The fourth DISCOM, namely
CESCO, is paying the monthly BST in full from April 2005 onwards.
(But the first three companies are taking escrow relaxation from GRIDCO
for payment of salaries. In other words, GRIDCO has been paying salaries
to 75,000 employees.)
(vii) Disinvestment of 49 per cent of Government share in OPGC has unlocked a
substantial amount of funds, which could be utilised for development in other
sectors.
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