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

Uttar Pradesh
one-man-one-post to foster a competitive environment, which would facilitate the
benefits accruing from restructuring and reforms to percolate down to the consumers.
Capacity Building
The State Government needs to ensure that the individual entities also have the right
institutional arrangements, which promote efficiency and improvement both in terms of
cost reduction and increase in collection of the billed amounts. The corporations need
substantial institutional strengthening and operational planning. They lack trained
technical, financial and managerial manpower at all levels. It is, therefore, extremely
important that the Government assist these corporations in strengthening the
management structure and facilitate their independent operations.
Energy Accounting
A robust energy audit infrastructure considerably assists in pinpointing the problem areas
in distribution and enhancinging accountability. Consumer indexing and feeder level
monitoring of supplies is a vital part of this efficiency chain. Considerable financial
assistance is available from the Central Government in the form of APDRP loans and
grants to improve the energy audit system of the distribution utilities.
Collections from Government Department/Institutions
Mounting arrears of the DISCOMs are an area of concern. The poor collection levels,
coupled with the high level of T&D losses, is pushing the State power sector into a
severe financial crisis and the DISCOMs are not in a position to pay for adequate power
purchased from Central utilities and State generation entities. This, in turn, is leading to
financial un-viability of the generation sector as well. One of the reasons for the poor
financial position of the DISCOMs is the non-payment of the electricity dues by the State
Government departments/institutions. Hence, the State Government needs to institute
requisite mechanisms to ensure timely settlement of these dues.
Augmentation of Supply
The State is facing a severe power shortage. The quality of supply through out the State
is poor and erratic. This is impeding industrial and commercial growth in the State. There
is a need to augment generating capacity within the State urgently to improve supply
conditions. This is even more vital in view of the State taking considerable initiatives in
creating a rural distribution infrastructure under the RGGVY. The benefits of
investments made under the RGGVY would be more discernable only when there is
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