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

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State <strong>Report</strong>s (Vol.-III)<br />

Study on `Impact <strong>of</strong> Restructuring <strong>of</strong> SEBs’<br />

the low remuneration package, companies are facing difficulty in recruiting the<br />

right type <strong>of</strong> qualified persons.<br />

8 TARGETS<br />

The installed capacity <strong>of</strong> APGCL <strong>of</strong> 575 MW has not been augmented for more<br />

than a decade. The present effective capacity is only 150 MW and operational<br />

capacity is around 100 MW only. In view <strong>of</strong> the focussed attention on restoring<br />

the units which are under break down and augmenting the supply <strong>of</strong> gas from<br />

Oil India Limited, the operational capacity was likely to increase by the R&M<br />

scheme (financed by PFC) by 20 MW and Namrup TPC capacity by 36 MW by<br />

June 2006. The generation <strong>of</strong> 808 MU is better compared to that obtaining in<br />

the last three years prior to restructuring. 3,431 MU <strong>of</strong> energy available for<br />

transmission in 2004 (the first year <strong>of</strong> restructuring) was more than the energy<br />

available during any <strong>of</strong> the last five years. Similarly, the energy <strong>of</strong> 3,137 MU<br />

delivered by the transmission company in 2004 was higher compared to any <strong>of</strong><br />

the previous five years. The target for reduction in the transmission loss has<br />

been kept so as to achieve a level <strong>of</strong> 6 per cent by 2007-08 from the current<br />

level <strong>of</strong> 8.55 per cent. This is likely to be achieved as substantial investment is<br />

being made under APDRP, NLCPR, ADB and other schemes. The target for<br />

reduction in the technical losses by 2007 is from 18 per cent to 14 per cent and<br />

in commercial losses, from 14 per cent to 5 per cent. In the first year <strong>of</strong><br />

restructuring, there had not been any noteworthy reduction by the DISCOMs.<br />

9 FINANCIAL<br />

In the restructuring <strong>of</strong> ASEB and as a part <strong>of</strong> the US$ 250 million assistance<br />

from ADB, US$ 150 million was meant for restructuring and corporatisation <strong>of</strong><br />

ASEB. The cash deficit was envisaged up to 2005-06. Non-cash settlements<br />

were required to be made. The targets and the actuals are as under:<br />

8.12

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