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

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State Reports (Vol.-III) Study on `Impact of Restructuring of SEBs’ Table : Amount of Energy Sold (MUs) Category 2000-01 2001-02 2002-03 2003-04 2004-05 Hydel 0.0 0.0 0.0 0.0 0.0 Thermal 74.8 35.4 0.0 0.0 0.0 Gas 793.8 752.1 706.5 677.2 720.9 Total 868.6 787.5 706.5 677.2 720.9 (d) Financial The Board had been in the red as the net losses were in the range of Rs 500-600 crore each year up to 2003-04. The net worth of the utilities had been eroded and the old structure could not cope with the increasing power demand, both in terms of quality and affordability to the consumers. The operational and financial conditions of the utilities were such that the system could not be carried on without heavily eating into resources of the State Government, which it could hardly afford. The State Government realised that the process of reform and restructuring of the whole power sector had become inevitable. The data is as under: Table: Financial Condition of ASEB/Utility Particulars 1999-00 2000-01 2001-02 2002-03 2003-04 (Rs crore) 2004-05 Turnover 537.06 631.34 648.51 754.77 887.54 1013.08 PBT (-)577.82 (-)607.21 (-)631.98 (-)394.00 (-)522.73 (-)1088.05 PAT (-)577.82 (-)607.21 (-)631.98 (-)394.00 (-)522.73 (-)1088.05 Interest paid 25.27 28.58 3.79 9.83 0.47 181.02 Wages & Salaries 252.04 298.41 285.3 260.99 276.36 300.14 Equity 1350 1350 1350 1350 1350 1350 Debt outstanding 1677.32 1735.56 1719.24 1809.39 1892.49 1832.74 Net worth (-)1526.81 (-)2152.53 (-)2688.87 (-)2166.45 (-)2627.15 (-)3584.34 Govt. subsidy 52.33 52.65 52.33 80.06 0.04 69.69 3 PROGRESS OF RESTRUCTURING 3.1 ASEB is the first SEB, to be restructured after the enactment of the EA, 2003. In some ways, it is a unique model, which has been evolved under the new legislation, as concrete steps for reform and restructuring had been taken before the new Act came into force. A power sector policy was announced in January 2003 for reform and restructuring. The main objectives of this comprehensive policy, inter-alia, were: 8.4
Assam (i) To supply adequate quantity of electricity, in an efficient manner and at a reasonable cost to all consumers in the State; (ii) To restore the financial viability of the power sector so that it is no longer a burden on the State exchequer; (iii) To provide for accountability and responsibility for all power utilities by restructuring and corporatising them; (iv) To provide an environment wherein tariff could be fixed in a transparent manner through an independent Regulator; and (v) To provide a suitable environment in which private sector investment could be attracted in the power sector. 3.2 The policy also broadly indicated the general strategy as to how the objectives outlined in the policy were to be achieved. The policy indicated that generation, transmission and distribution functions of electricity would be separated and the resultant entities corporatised to bring in more accountability and efficiency. It was visualised that the new entities would be incorporated under the Companies Act, 1956. The policy also visualised that financial restructuring would be done so that the new entities become financially viable. The new companies were to have managerial and operational autonomy. As the Regulatory Commission had already been set up under ERC Act, 1998, it was mentioned that this would be converted into a full-fledged multi-member Commission. The policy went into some important details of financial restructuring through a transfer scheme under which accumulated losses of SEB would be set-off against the Government equity and loans and provision will be made for the unfunded liabilities relating to pensionary and other retirement dues of staff. The Assam Legislative Assembly passed the Assam Electricity Bill to provide for restructuring and rationalisation of the power industry The Bill was, however, not enacted since the EA, 2003 came into effect in June 2003. 3.3 An Appraisal Mission from the Asian Development Bank (ADB) came for discussions in August/September 2003 for the loan appraisal of Assam Power Sector Development Programme. Under the conditions agreed to by the Government of Assam, the Mission recommended a loan of US$ 250 million, out of which US$ 150 million were to be utilised in the programme component for independence and corporatisation of ASEB and US$ 100 million was the 8.5
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FOREWORD Electricity is the most ve
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PREFACE The country has been regist
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Performance of Generating Companies
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S.No. Parameter Uttar Pradesh - 199
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Voltage Level 400 kV 220 kV Annexur
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Transmission Sub-Station Capacity A
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Parameter 1995-96 1996-97 1997-98 1
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Parameter 1995-96 1996-97 1997-98 1
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STATES/UTs 1990-91 1991-92 1992-93
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Commercial Profit/Loss (with Subsid
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Rs crore 45000 40000 35000 30000 25
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Rs crore 60 50 40 30 20 10 % of Los
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Percentage Commercial Losses of Sta
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Percentage 25 20 15 10 5 0 -5 Perce
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Per Capita Consumption of Electrici
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Percentage 70.00 60.00 50.00 40.00
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CONTENTS Executive Summary.........
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National Report (Vol.-II) Study on
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6.27 Encouragement to Non-Conventio
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CHAPTER - 2 WAY FORWARD Way Forward
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1 INTRODUCTION ANDHRA PRADESH EXECU
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Andhra Pradesh The bulk supply trad
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Andhra Pradesh 1.5.3 Distribution 2
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Andhra Pradesh 1.5.5 Customer Servi
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Andhra Pradesh CHAPTER 1 GENERAL FI
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Andhra Pradesh publicity campaign u
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Andhra Pradesh • Standards of per
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Andhra Pradesh individuals but by o
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Andhra Pradesh • Improved custome
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Andhra Pradesh 2.1 INTRODUCTION CHA
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Andhra Pradesh • Tariff for agric
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Andhra Pradesh APTRANSCO handled th
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State Reports (Vol.-III) Study on `
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4.1 GENERATION State Reports (Vol.-
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4.1.2 Operational Efficiency State
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4.3.5 Billing and Collection State
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4.3.10 Network Development State Re
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4.3.15 Power supply to Agricultural
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TABLE OF CONTENTS EXECUTIVE SUMMARY
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STATUS OF PERSONNEL DISPERSAL Estab
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GENERAL MADHYA PRADESH EXECUTIVE SU
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Madhya Pradesh Liabilities Taken Ov
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Madhya Pradesh to high level of emi
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Madhya Pradesh Collection Efficienc
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Madhya Pradesh in 27 divisions of s
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Madhya Pradesh 2,940 MW of generati
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Madhya Pradesh 1. GENERAL OVERVIEW
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Madhya Pradesh Pradesh, but functio
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Madhya Pradesh 1.5.1 Key Features o
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Madhya Pradesh Details of FRP for t
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Madhya Pradesh 1.7.1 Functions of t
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Madhya Pradesh (b) All the cash col
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Madhya Pradesh 2. GENERATION 2.1 MA
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Madhya Pradesh on R&M activities to
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Madhya Pradesh 3200 3150 3100 3050
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Madhya Pradesh • A number of MOUs
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Madhya Pradesh 3.2 OPERATIONAL PARA
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Madhya Pradesh addition and strengt
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Madhya Pradesh 3.7.2 Transmission C
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Madhya Pradesh DISCOM wise Energy R
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Madhya Pradesh 2000-01 to 79 per ce
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Madhya Pradesh 4.1.3 Subsidy Suppor
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Madhya Pradesh While MPERC, in the
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Madhya Pradesh The State Government
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Madhya Pradesh Due intelligence and
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Madhya Pradesh 7. Electricity Act 2
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Madhya Pradesh In regard with the R
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Madhya Pradesh 8.5.2 Directives Iss
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Madhya Pradesh agricultural consume
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Madhya Pradesh and rationalisation
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Madhya Pradesh is felt that the int
Page 239: TABLE OF CONTENTS Background ......
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Page 248 and 249: Nov. 1995 The Orissa Electricity Re
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Page 287 and 288: 1 INTRODUCTION ASSAM RESTRUCTURING
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Page 295 and 296: Assam About 1.61 lakh below poverty
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Page 301 and 302: Assam The Strategy is also to have
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Page 309 and 310: DISTRIBUTION SYSTEM................
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% Damage 30.0% 25.0% 20.0% 15.0% 10
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Theft Reduction Measures State Repo
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ACS* State Reports (Vol.-III) Study
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Capital Expenditure State Reports (
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Collection State Reports (Vol.-III)
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Directives Issued by the Commission
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DISTRIBUTION State Reports (Vol.-II
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There are wide variations in the tr
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2.70 Annexure-III
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Power Utility Project name APDRP po
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BACKGROUND GUJARAT Till the year 19
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Gujarat assets transferred to it fr
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Gujarat • The transfers of the pe
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Gujarat communication to employees
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Gujarat The following table gives f
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Gujarat OTHER IMPORTANT SUPPORTING
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Gujarat NOTEWORTHY INITIATIVES IN P
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Gujarat It has opened up a number o
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Gujarat • GSECL 8 Power stations
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Gujarat E-URJA PROJECT This is yet
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Gujarat OTHER ACTION POINTS In the
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Gujarat Investments Made to Improve
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Gujarat Investments Made to Improve
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Gujarat Performance Parameters of D
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Gujarat Category of connection % Ch
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Gujarat Details of Arrears of Reven
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Gujarat Payment of bills is accepte
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Gujarat Important Data about Indivi
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Gujarat Paschim Gujarat Vij Company
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INTRODUCTION State Reports (Vol.-II
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Highlights of the Transfer Scheme S
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Adjustments in current liabilities
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GENERAL COMMENTS State Reports (Vol
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Ageing of Generating Units State Re
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Proposed Capacity Additions State R
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DISTRIBUTION Introduction State Rep
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Consumer category and consumption s
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Billing and Collection Efficiency P
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Year State Reports (Vol.-III) Study
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INTRODUCTION TAMIL NADU The Tamil N
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Tamil Nadu Financial Position of th
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Tamil Nadu Strengths of the Board T
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Tamil Nadu Board and the Government
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Tamil Nadu obligations of all the p
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Tamil Nadu • The progress in rura
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Tamil Nadu What is the energy cost
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Billing efficiency Tamil Nadu Detai
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Tamil Nadu Preventive action and pr
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Tamil Nadu iv) Information received
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Tamil Nadu Service to Consumers i)
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Tamil Nadu Reform Measures Action t
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TABLE OF CONTENTS Background ......
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iii) Bakreswar TPP Units 4 and 5 (2
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POWER UTILITIES IN THE STATE WBPDCL
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TABLE OF CONTENTS RESPONSES FROM ST
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PROGRESS OF REFORMS State Reports (
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COMMENTS State Reports (Vol.-III) S
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DISTRIBUTION LOSSES 1995-96 1996-97
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BILLING AND COLLECTION EFFICIENCY C
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COMMENTS State Reports (Vol.-III) S
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Year-wise Position of Loans Raised
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Direct jurisdiction of Ombudsman in
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DISTRIBUTION Professional Directors
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OBJECTIVE OF REFORMS EXECUTIVE SUMM
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Uttar Pradesh auxiliary consumption
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Uttar Pradesh one-man-one-post to f
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Uttar Pradesh The power sector refo
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Uttar Pradesh In the second phase o
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Uttar Pradesh GENERATION SECTOR OVE
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Uttar Pradesh CGS Stations Capacity
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Uttar Pradesh Sec. Oil Consumption
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Uttar Pradesh TRANSMISSION AND DIST
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Uttar Pradesh been increasing consi
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Uttar Pradesh The State should also
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Uttar Pradesh The figures of distri
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Uttar Pradesh SUBSIDY SUPPORT FROM
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Uttar Pradesh 2500 2000 1500 1000 5
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Uttar Pradesh Particulars Financial
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Uttar Pradesh created under the fir
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Transformation Capacity at Grid Sub
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GROUP-1 STATES SYNOPSIS OF STATE RE
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Synopsis of State Reports (Vol.-IV)
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Operational Efficiency Synopsis of
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2.1.1 Chronology of Restructuring S
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2.2.4 Financial Parameters Key Conc
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Anti Theft Measures Synopsis of Sta
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3.11 ACHIEVEMENTS OF THE NEW COMPAN
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5.2 METHODOLOGY ADOPTED Synopsis of
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5.6 OERC and the DISCOMs Synopsis o
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CHAPTER - 6 RAJASTHAN 6.1 BACKGROUN
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Preventive raids (No.) Demand raise
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1993 -94 Synopsis of State Reports
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CHAPTER - 7 UTTAR PRADESH 7.1 FACTO
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CHAPTER - 8 ASSAM 8.1 BACKGROUND, O
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• Workflow based approvals and no
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10.2 FACTORS LEADING TO REFORMS Syn
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Performance of the Board Synopsis o
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Weaknesses of the Board Synopsis of
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Answer (a) Better and sustainable s
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