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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
The rise in the short-term loans is really alarming. From a figure of Rs 681 crore at the
time of restructuring, it has risen to Rs 4,291 crore
Year
Debt Servicing
Repayment
(including of STLs)
6.40
Interest Total
1997-98 200 999 1,199
1998-99 390 1,086 1,476
1999-00 720 1295 2,015
2000-01 1,031 1,307 2,338
2001-02 1,730 1,331 3,061
2002-03 2,482 1,316 3,798
2003-04 2,656 1,303 3,959
2004-05 2,705 1,289 3,994
2005-06 3329 1230 4559
COMMENTS
(Rs crore)
The burden of debt servicing is indeed staggering. From a figure of Rs 2,015
crore at the time of restructuring, the debt servicing liability has reached Rs
4,559 crore – a jump of 126 per cent. The tight rope walking through which the
debt servicing is being done is fraught with great risk. Unless there is genuine
improvement in the working, such window dressing is not sustainable for long.
Instead of deferring the problems, the Government will have to initiate bold measures
to check the steep fall in the performance of DISCOMs.
ROLE OF THE STATE GOVERNMENT
Whether policies of the State Government with respect to electricity pricing and
subsidies transparent, promote competition in the market and facilitate the company
in controlling theft?
For controlling theft, etc., much needs to be done at the Government level. Its
approach has been at best lukewarm on this front. In matters relating to agricultural
consumers, there is need for greater transparency.