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

Orissa
Although T&D loss has come down from more than 50 per cent to around 40 per cent,
this is still above the permissible limit. Significant T&D loss reduction could be
achieved if fresh investments are made by the DISCOMs.
CONCLUSIONS
• Orissa was the first State in the country to go in for reforms in the electricity
sector in a big way. OERC was the first Electricity Regulatory Commission.
Restructuring of the sector was taken up in right earnest.
• Separating hydro and thermal generation was a good idea, leading to the setting
up of the OHPC. Selling TTPS to NTPC, partially privatising OPGC and
creating the transmission company called GRIDCO were right steps. The only
problem was the absence of transmission sector management and overall
planning for the power sector.
• Privatisation of the distribution segment into four DISCOMs was done in a hasty
manner, without proper assessment of the parameters. Government should not
have withdrawn from the scene at one go.
• Assets were over-valued. This was corrected by the Kanungo Committee by
postponing the revaluation of assets by five years, which is just over. Such
revaluation should be postponed by another five years, as recommended by the
OERC.
• DISCOMs have project related liabilities to the extent of Rs 660 crore. They are
not making any payment to GRIDCO in this regard. They will have to do it by
increasing their collection efficiency. Arrear receivables Rs 1,500 crore including
delayed payment surcharge (DPS) remains payable by the DISCOMs. If the
DISCOMs collect old dues, 50 per cent can be retained by them and the other 50
per cent will have to be paid to GRIDCO. If each bill is scrutinised it will be
found that there are lot of bogus and un-collectable dues. This can be written off.
• The super cyclone of 1999 caused severe damage to the distribution
infrastructure in the coastal areas. In the absence of privatisation the bill for
restoration works would have been paid by the Government. But nothing was
paid from the Calamities Relief Fund. Many of the consumers have disappeared.
In quite a few villages, even restoration work has not been done. A lot of dues
relating to the coastal districts will have to be written off after proper scrutiny.
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