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

GENERAL
HARYANA
EXECUTIVE SUMMARY
Haryana was one of the pioneering States in power sector reforms and restructuring.
The study has been undertaken with the object of taking stock of the progress made by
the State on the power front after restructuring of its SEB in 1998 and also to assess
the extent to which the targets and goals set at the time of the implementation of the
reform have been achieved. The role played by the State and efforts of the Regulatory
Commission to steer the reforms in the early stages of the reforms has also been
analysed. The study has analysed the data as furnished and information collected
during discussions with the officials of the State Government and the Utilities. The
total capital investments in the power sector in the State prior to the reforms were of
order of Rs 1,053 crore during the period 1991-92 to 1997-98. The investments picked
up considerable pace after restructuring of the sector into separate generation,
transmission and distribution Utilities. The investments have grown fourfold after
restructuring of the State SEB, compared to the corresponding period prior to
restructuring.
Haryana had been facing peak power demand shortage of 11 per cent and energy
deficit of around 25 per cent at the time of restructuring of HSEB in 1998. The
demand in Haryana has been rising consistently at an annual rate of around 8 per cent.
This demand is likely to be higher with greater economic development on account of
new industries including Information Technology (IT) and accelerated real estate and
urban development in the National Capital Region (NCR), a large part of which falls
in the State of Haryana.
The State’s own power generation capacity is limited and has been heavily dependent
on power imported from outside sources. An aggregate capacity of 724 MW has been
added during the post-reforms period till date, comprising of 710 MW in thermal and
14.4 MW in hydel. A bulk of this capacity addition, has, however, occurred during the
period 2003 to 2005.
The power sector reforms process in the State has failed to involve the public at large
with regard to the reform objectives, transitional problems and interplay of all the
stakeholders in the entire process. Communication strategy, which was part of the
power sector reforms, when the restructuring exercise of HSEB was initiated in 1998-