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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
project component mainly for transmission and distribution system
strengthening and revamping. The Mission also agreed to provide technical
assistance of US$ 1.5 million for funding the cost of consultants in the
reorganisation of SEB. M/s P.A. Consultancy International were appointed to
work out the viable structures for the restructured entities. The ADB loan was
sanctioned on 11 December 2003; first Tranche of US$ 90 million was released
on 12 December 2003 and the second Tranche of US$ 60 million on 28 June
2005.
3.4 The Government of Assam approved the following power sector structure for
the State vide its letter dated 30 September 2003 as under:
(a) Generation: Assam Power Generation Corporation Limited (APGCL);
(b) Transmission and Transformation: Assam Electricity Grid
Corporation Limited (AEGCL); and
(c) Distribution:
(i) Upper Assam Electricity Distribution Company Limited;
(ii) Lower Assam Electricity Distribution Company Limited; and
(iii) Central Assam Electricity Distribution Company Limited.
3.5 These companies were incorporated under the Companies Act, 1956 on 23
October 2003. The Government of Assam had accepted the recommendations
of the ADB Appraisal Mission that there should be a complete settlement of
cross-liabilities between Government of Assam and ASEB under the Financial
Restructuring Plan (FRP). An MoU was signed between the Government of
Assam and ASEB in November 2003. The summarised position, as on 31
March 2003, is as under:
Amount owed to ASEB by Govt. of Assam Rs 5,389 crore
Amount owed by ASEB to Govt. of Assam Rs 4,560 crore
3.6 The Government of Assam also agreed to provide for the cash deficit (of the
order of Rs 338 crore) of ASEB and its successor companies during the
transition period The FRP order was issued by the Government of Assam on 28
October 2003. This spelt out how the outstanding dues and other claims of
ASEB would be settled. The Government also committed to make on-going
8.6