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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
Interest and finance charges 122.76 122.76
Other debits (Materials cost variation) 0.73 0.73
Extraordinary items 0.25 0.25
Total expenditure (E ) 5541.28 33.40 5507.88
Surplus/(Deficit) [(R)-(E)] (52.30) (18.90)
Return on Equity amount of Rs 2,691
crore as per provisional transfer scheme
(0.7)%
While transferring MSEB’s generating plant assets to MAHAGENCO, Government of
Maharashtra had indicated equity of Rs 2,691 crore as its contribution. The return on
this equity is negative and works out to (0.7 per cent).
Way forward
A few of the areas needing close attention in immediate future are listed below:
i) The company should form a core group to identify its total requirements of all
relevant data pertaining to administrative, financial and operational activities of
the company as well as presentation of various outputs from the same for
efficient decision-making. This should be attended to on top priority so that when
the holding company of MSEB implements the computerised Information
System, MAHAGENCO would have already finalised its own requirements.
ii) The staff, which earlier worked with MSEB, has gained considerable expertise in
efficiently handling the setting up of generating plants and completing the works
in the defined time and within a reasonable cost. Considering however, large
annual capital investments for the proposed generation projects and adverse
impact if these are delayed, it is preferable to undertake computerised monitoring
of construction activities of the new generating stations.
iii) Technical specifications of new generating plant may need inclusion of energy
efficient systems/auxiliary equipments in place of conventional ones in use so
far. Similarly control and instrumentation systems will need to be so designed as
to ensure automatic efficient operation of the machines.
iv) Risks associated with timely availability and required quantities of coal, gas and
water for future power stations will have to be identified, properly addressed and
mitigated. The mines for linkages of coal for future plants may be located far
away (more than 1,000 km). Also coal washeries will have to be established at
these mines. Joint ventures may have to be formed for construction and operation
of not only these washeries but in some cases captive mines as well.
Preparedness in advance to deal with the related issues would be advantageous to
MAHAGENCO.
10.30