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

Gujarat
E-URJA PROJECT
This is yet another important initiative taken by GEB to streamline operations of
restructured companies. So far, no other Utility in the country is reported to have
undertaken a similar initiative. When the system is fully operational, it would lead to
many advantages in working of the new companies. Other companies in the power
sector could benefit from following the Gujarat example and taking suitable actions in
setting up a computerised Information System.
WAY FORWARD
Role of GUVNL
GUVNL is entrusted with the task of bulk purchase and sale of power from GSECL to
the four DISCOMs. It is required to organise loans on favourable terms from the
market for the different power companies. It will also coordinate with the
Government of Gujarat on behalf of these companies. Such umbrella type coverage of
functions could lead to some difficulties in future. These need to be identified quickly
for devising suitable solutions. With this in view the following suggestions are made.
• GUVNL has to guard against its assuming the role of a big brother and of micromanaging
the affairs of other companies through an invisible hand. In such a
situation, the companies will lose their freedom and initiative to come up with
new and innovative ideas appropriate for adopting in their own areas of
operation. As a result, the very concept of fostering competition in the four
DISCOMs could suffer.
• GUVNL is quite aware of this possibility and has taken correct initiatives in
formulating joint agreements between the DISCOMs and GSECL and GETCL.
In order to further formalise these arrangements, principles for determining bulk
rates for purchase and sale of energy on different considerations, such as
quantum of energy from GSECL, mix of hydro and thermal contribution, energy
from IPP and central sector plants, etc.; leaving enough room for the companies
to generate more money by adopting innovative solutions within these defined
parameters, could be discussed and finalised with the companies on a long-term
basis. Similarly, the principles of distribution of Government grants, equity
support, rural electrification subsidy, as well as savings which will have to be
generated by individual companies by improving their performance could also be
discussed and finalised for a longer duration on similar lines as is done in FRP.
These targets and achievements thereof could be discussed twice a year for
incorporating suitable corrections. With such a system in place, the individual
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