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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
Government of UP loan and accrued interest written off Rs 20,116 crore
Adjustments for transfer of Unchahar Plant to NTPC Rs 919 crore
CPSU liabilities retained by Government of UP Rs 2,515 crore
The additional financial commitment taken by Government during the restructuring of
UPSEB is indicated below:
Terminal liabilities retained by Govt. Rs 6,176 crore
GPF liabilities Rs 1,634 crore
PERFORMANCE OVERVIEW OF RESTRUCTURED ENTITIES
The restructuring of UPSEB was expected to lead to improved operational and financial
performance, encourage investments and ensure better quality of supply to the
consumers. The performance of these newly created entities from 2000-01 onwards on
key performance indicators is briefly summarised below.
Demand-Supply Deficit
The State had been facing huge energy and peak shortages at the time of reform of the
power sector. The peak load deficit prevailing in the State was in excess of 30 per cent
up to 1998-99. However, the peak deficit continues to be in the vicinity of 30 per cent
from 2003-04 onwards. The energy deficit hovered around 15 per cent during the prereform
years, deteriorating further to 20 per cent from 2003-04 onwards. The peak
demand has consistently outstripped availability from the installed capacity in the State,
by a considerable margin even after the restructuring of UPSEB. Lack of additional
generating capacity in the State in the recent past has mainly contributed to this bleak
situation, while the peak demand has been witnessing robust growth over the years. The
poor financial health of the State sector has not permitted it to contract more power from
other States.
Operational Performance in Generation
UPRVUNL has initiated measures to improve operating performance levels in the
existing generating stations during the post-reform period. After restructuring, PLF of the
generating plants has consistently improved. The PLF has increased by 10 percentage
points from the year 2000 onwards. The specific oil consumption has also fallen sharply
during the post-reform period and is close to the CERC approved norm of 2 ml/kWh.
The plant availability has improved to 73.28 per cent in 2003-04 from 64.89 per cent in
the first year of restructuring (2000-01). However, there is a scope for reduction of
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