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

West Bengal
CONCLUSION
The State Regulatory Commission came into being in 1999 and is issuing tariff orders.
The State Government is going to finalise its strategy on reforms shortly. It has
already received the report from PwC and has consulted the stakeholders.
Restructuring of the sector is attracting due attention from the Government.
Privatisation of distribution beyond what already exists is not a top priority in the
State. The Kolkata Metropolitan Area and the industrial area contribute to the bulk of
the revenue. The other areas with the exception of the Durgapur belt may not be able
to sustain separate distribution companies. The State Government wants to make
WBPDCL a commercially viable entity to attract some private capital also. DPL is
going to be restructured. The WBSEB has turned around in the present set-up. To
achieve further gains the process of restructuring needs to be expedited.
Commendable work has been done in the State in the matter of metering, billing and
collection. The quality of service has also improved significantly. Conscious attempts
have been made to reduce theft of electricity. They are already thinking of creating a
separate transmission company, which would also be in-charge of load dispatch. A
new distribution company will be set-up having strategic business units, which would
act as profit centres. In due course of time, creating separate companies can be thought
of. In the peculiar context of West Bengal, it appears to be a sensible strategy.
The State is yet to finalise its policy regarding inducting private capital for power
generation. But they have an ambitious Eleventh Plan target. It would be a good idea
to set-up joint ventures in West Bengal, as it may not be possible for the State to pump
in adequate equity.
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