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

Gujarat
communication to employees highlighting the related issues and the importance of
their whole-hearted and active participation in the process. A set of champions and
trainers were created from amongst the staff to spread the message to their colleagues.
Structured meetings were held with unions/associations regularly to sort out
misunderstandings if any. Similarly meetings were held with industries associations
and consumers’ forums to inform them about the reform agenda of GEB. All these
efforts helped in no small measure in the smooth restructuring of GEB.
TRANSFER OF ASSETS TO GSECL, GETCL, FOUR DISCOMS AND
RESIDUAL GEB
As per the initial transfer scheme, the residual GEB was to retain certain functions in
respect of bulk purchase of electricity and sale to DISCOMs, residual assets pertaining
to Load Despatch Centre and those that had remained after transfer to other entities.
Since trading of electricity is a licensed activity under the Electricity Act, 2003, it
became necessary to transfer this function from the residual GEB to a corporate entity.
Therefore in December 2004, Government of Gujarat decided to establish a new
company under the Companies Act 1956, namely the ‘Gujarat Urja Vikas Nigam
Limited’ (GUVNL) and transfer all functions/assets earlier proposed to be kept with
the residual GEB except the assets pertaining to Load Despatch Centre which were
transferred to GETCL in the meantime.
FORMULATION OF FINANCIAL RESTRUCTURING PLAN
The Financial Restructuring Plan (FRP) is one of the most important components of
the reform agenda. It defines a detailed road map for the successor entities in their
effort to achieve turnaround by the year 2011 with improvements in their efficiency
parameters and support from Government of Gujarat in subsidies and capital infusion.
The highlights of FRP are noted below:
Financial support to be extended by Government of Gujarat as indicated in the
FRP
• Taking over the liability of payment of CPSU Bonds aggregating to Rs 1,628
crore;
• Converting the State Government’s loans into equity aggregating to Rs 623
crore;
9.7