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

Rajasthan
The trend of revenue increase on annual basis has been much higher during the prerestructuring
period than in the post-restructuring period. In three out of five years
(pre-structuring), the percentage of annual revenue increase was ranging between 18
to 20 per cent. In the post-restructuring period, in three out of five years, the increase
did not go beyond five per cent. Rather, in 2001-02, for the first time there was a
negative growth. There were only two tariff increases during this period and as a
result of these tariff orders of the Regulatory Commission, the increase has been
around 12 per cent in 2001-02 and again similar increase in 2004-05.
Percentage of Revenue Collection
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
-96 -97 -98 -99 -00 -01 -02 -03 -04 -05
95.42 95.41 100.17 99.62 98.18 98.17 100.09 98.88 98.94 98.49
The percentage of revenue collection has been traditionally very good in Rajasthan.
During the four years preceding the restructuring, the percentage of revenue collection
ranged from 98 to 100 per cent. In post-restructuring period, for two years while
maintaining the tempo, the increase was marginally higher than 100 per cent. But in
the subsequent years, there is a slight decline. This is reflective of a soft approach on
the part of DISCOMs. In 2002, the Government has directed the DISCOMs not to
recover the increased minimum charges in rural areas.
Outstanding Dues against Consumers*
6.29
(Rs crore)
1996 1997 1998 1999 2000 2001 2002 2003 2004
-97 -98 -99 -00 -01 -02 -03 -04 -05
364.29 477.83 472.60 481.21 546.01 667.27 723.48 801.14 364.29
*Net of provision for Doubtful debts.
Deficit (Without Subsidy)
(Rs crore)
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
-96 -97 -98 -99 -00 -01 -02 -03 -04 -05
430 498 639 1041 1678 1578 1291 1582 1754 2014
Immediately after the restructuring, due to the cleaning up of the balance sheets, etc.,
the deficit recorded some reduction but after that it is increasing. Even after six years
of restructuring and pumping in sizeable investments, the results are not
commensurate with the investments made in the sector.