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

OBJECTIVE OF REFORMS
EXECUTIVE SUMMARY
The Government of Uttar Pradesh undertook to reform its power sector in 1999 so that
its power utilities run on commercial lines in a competitive and appropriately regulated
power market.
PROCESS OF RESTRUCTURING
The Uttar Pradesh Electricity Regulatory Commission (UPERC) was established in
September 1998. In 1999, the Uttar Pradesh Electricity Reforms Act, 1999 was enacted,
followed by notification of the Uttar Pradesh Electricity Reforms Transfer Scheme, 2000
on 14 and 15 January 2000. This transfer scheme restructured the erstwhile Uttar Pradesh
State Electricity Board (UPSEB) along functional lines of generation, transmission and
distribution into four entities as given below:
(a) Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) responsible for
the thermal stations of UPSEB;
(b) Uttar Pradesh Jal Vidyut Nigam Limited (UPJVNL) responsible for hydro power
stations of UPSEB;
(c) Uttar Pradesh Power Corporation Limited (UPPCL), responsible for transmission
and distribution of electricity in Uttar Pradesh; and
(d) Kanpur Electricity Supply Company (KESCO), for undertaking distribution
operations in Kanpur.
The State of Uttaranchal came into existence on 9 November 2000 and assets of the
erstwhile UPSEB pertaining to generation, transmission and distribution located within
the State of Uttaranchal were transferred to the newly carved out State. This was
followed by the second phase of restructuring on 12 August 2003, wherein UPPCL was
further restructured into a separate transmission entity and four distribution companies
(DISCOMs).
LIABILITIES SETTLEMENT
In order to enable the newly carved out entities to start on a clean slate, the State
Government written-off/assumed massive liabilities of more than Rs 31,300 crore. as
indicated below: