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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
RESPONSES FROM STATE GOVERNMENT TO IIPA
QUESTIONNAIRE
BRIEF SUMMARY OF ELECTRICITY REFORM AGENDA OF THE
GOVERNMENT OF RAJASTHAN
Background
In 1991, as part of its effort to mobilise resources for power generation, Government
of India opened the power generation industry to private sector investment. In 1993,
the Government of Rajasthan decided to reform its power sector so as to create
conditions for sustainable development of the sector and improving efficiency and
quality of service to the consumers by allowing private sector participation in the State
power industry, particularly in generation. The Broad Reform Policy Statement,
issued in September 1995, aimed at attracting private investment and expertise to
expand and improve electricity services in the State and to enable the sector to gain
access to capital market and commercial financing. The policy statement was revised
in 1997 and 1998 and with the developments taking place in the power sector, the
earlier policy statement was replaced by the Policy Statement declared in May 1999.
Policy Statement on Rajasthan Power Sector Reform Programme
The policy statement included the following objectives:
• To facilitate and attract investments;
• Bring about improvements in the efficiency of the delivery system; and
• Create an environment of growth in the power sector for the overall benefit of
the people of the State.
The main components of the reform programme have been:
• Enactment of legislation to pave the way for reforms;
• Establishment of an Electricity Regulatory Commission for licensing, regulation
and tariff determination for the electricity sector;
• Restructuring Rajasthan State Electricity Board (RSEB) into separate companies
for generation, transmission and distribution functions;
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