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

COMMENTS
State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
The share of the State’s allocations for the power sector was ranging between 18 to 20
per cent during 1990-94. It recorded a steep decline for the next eight years and the
allocations were ranging between 5 to 7 per cent from 1996-97 to 2001-02. After this,
from 2001-02, there has been again a sharp rise in the State’s allocations. Substantial
funds have been allocated for the expansion of thermal stations also. The financial
position of the State Government has also registered a remarkable improvement
during the last three years and consequently the State Government has been somewhat
more generous in allocating funds for the power sector. The power purchase bills of
DISCOMs have gone up very substantially and consequently the State Government
had to come to the rescue of the DISCOMs, particularly as it had committed to the
agricultural consumers that it would increase the power supply from six to eight hours
per day.
Particulars
Revenue
(industrial
consumers)
Percentage
reduction*
Percentage of Revenue from Industrial Consumers
1996
-97
*compared to previous year
1997
-98
1998
-99
1999
-00
6.28
2000
-01
2001
-02
2002
-03
2003
-04
69 69 65 63 58 53 52 51 51
2 - 4 2 5 5 -1.89 -1.92 -
Over the years, the industrial consumers have been bearing the brunt of crosssubsidies.
Their tariffs have risen sharply. Hence, all over the country, the industrial
consumers are switching over to captive plants. The revenue from industrial
consumers, which used to be 71 per cent of the total revenue in 1995-96, had reduced
to barely 58 per cent by 2000-01. After restructuring, there is a further reduction by
five per cent. By 2004-05, this has come down to 51 per cent. Even then, the
DISCOMs do not appear to display any proactive approach in arresting this declining
trend. Unless special efforts are made to attract industrial consumers, the revenue from
the industrial sector is likely to reduce further, which will worsen the financial
position of the DISCOMs.
Annual Revenue
Total Revenue of the State Power Sector
2004
-05
(Rs crore)
Particulars
1995
-96
1996
-97
1997
-98
1998
-99
1999
-00
2000
-01
2001
-02
2002
-03
2003
-04
2004
-05
Revenue 2373 2801 3338 3407 3797 4496 4722 4933 5007 5618
Increase (%) 18.03 19.71 2.06 11.44 18.40 - 4.46 1.49 12.21