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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
Results Achieved by Better Financial Management and Control (Rs crore)
Particulars Savings
By re-negotiating the PPAs -1 st phase 495.00
By re-negotiating the PPAs - 2 nd phase 64.00
Interest cost reduction by restructuring loan portfolio
of Rs 4,191 crore
299.00
Savings in fuel costs due to use of washed coal/better
quality coal, negotiated price for LSHS
Besides the above, because of payment of CPSU dues,
GUVNL earned an incentive of Rs 312 crore.
102 .00
Reduction in T&D losses
From 30.9% in 2003-04 to 26.28%
in 2005-06 (estimated)
Improvement in PLF of GSECL
From 70.27% in 2003-04 to 72.48%
in 2005-06
Improvement in monthly revenue collection (without any From Rs 750 crore in 2003-04 to Rs
major tariff increase)
955 crore in first quarter of 2006
The above has resulted in improving the financial position as under:
Improvements in Financial Position
Particulars 2003-04 2004-05
(Rs crore)
2005-06*
Units sold (MU) 31001 31005 16365
Revenue from sale of power 8545 9050 4900
Subsidy 1101 1101 550
Other income 458 441 110
Total income 10104 10592 5560
Purchase of power 5578 5358 2540
Generation of power 2905 3288 1460
Other expenses 3553 2981 1695
Total expenses 12036 11627 5695
Surplus/(Deficit) (1932) (1035) (135)
Cash profit/(Cash Loss) (1153) (266) 265
(Source: GUVNL)
* The information pertaining to half-yearly period.
UPWARD REVALUATION OF ASSETS
The assets of the erstwhile GEB were restated upwards in order to ensure that
financial parameters of the newly formed entities project a realistic and healthy
picture. The net value of assets of GEB, after allowing for accumulated depreciation,
stood at Rs 5,950 crore as on 31 March 2005. With a view to strengthen the balance
sheets of the new companies, the net value of the assets has been restated at Rs 11,246
crore by reducing the accumulated depreciation amount by Rs 5,296 crore.
9.10