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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
The Cost of Power and Realisation from Different Categories of Consumers
(Paise per unit)
Particulars 2000-01 2001-02 2002-03 2003-04 2004-05
Average. Cost
of Power
266.00 305.00 320.00 333.00 337.00
Consumer Category wise Recovery
Agricultural 1 2 2 22 23
Domestic 157 158 177 211 216
Industrial large HT 394 349 420 440 442
Industrial small LT 313 401 359 390 406
Commercial HT 456 480 535 627 618
Commercial LT 386 396 472 565 579
It is clear from the above table that the subsidy for agriculture and domestic sectors is
huge. The following table gives the picture of the losses suffered by the Board due to
free power to farmers and subsidised power to the domestic consumers:
Revenue Foregone by TNEB due to Free and Subsidised Power
(Rs crore)
Consumer
category
2000-01 2001-02 2002-03 2003-04 2004-05
Domestic 757.00 1,136.00 1,251.00 1,181.00 1170.00
Agricultural 2,408.61 2,876.38 2,864.77 2,975.60 3,062.76
The obvious question is whether the Government had been compensating the Board
for these losses. The position is given in the following table:
Compensation Provided by the State Government (Rs crore)
Consumer category 2000-01 2001-02 2002-03 2003-04 2004-05
Domestic
Agricultural 250 250.00 322.50 196.00
Subsidy (others) 1,962.14* 250.00 16.00**
Compensation as % 7.9 55.1 7.8 6.0 5.0
*Securitisation of outstanding dues owing to CPSUs
** Subsidy for huts.
The amount provided by the State Government is nowhere near the actual losses
suffered by the Board; and the Board has been meeting these losses through
borrowings, which had gone up from Rs 5,524 crore in 2000-01 to Rs 9,091 crore in
2004-05. Needless to say the Board is now burdened with the additional interest
amount. Such a this situation cannot go on forever.
11.4