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

2.1.1 Chronology of Restructuring
Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
HSEB was carved out from PSEB in 1967. Haryana Electricity Reforms Act,
1997 was enacted in August 1998. HSEB was restructured into Haryana Power
Generation Corporation Limited (HPGCL) and Haryana Vidyut Prasaran
Nigam Limited (HVPNL). Subsequently, through the Second Transfer Scheme
(notified in July 1999), two DISCOMs, viz., (i) Uttar Haryana Bijli Vitran
Nigam Limited (UHBVNL) and (ii) Dakhshin Haryana Bijli Vitaran Nigam
Limited (DHBVNL) were incorporated by transferring distribution assets,
liabilities and personnel of HVPNL to them.
2.1.2 Power Purchase and Trading
Under the Transfer Scheme of 1998, HVPNL was entrusted with the function
of bulk purchase and supply of power to the DISCOMs under the single buyer
model (SBM). After the enactment of the EA, 2003, Government of Haryana
was required to separate the functions relating to power purchase and trading
from HVPNL. Accordingly, these functions were transferred to HPGCL. Under
the EA, 2003, HPGCL has also been issued separate license for trading and
supply of power in the State by the Haryana Electricity Regulatory
Commission (HERC).
2.2. REFORM PROCESS
2.2.1 Generation
Key Positives
One of the objectives of reforms was to increase generation capacity since it
had not been possible to obtain the required resources due to the poor financial
position of the erstwhile HSEB. At the time of restructuring, in 1998, the
capacity under HPGCL was only 863 MW, mostly thermal (65%). The State
had been facing energy deficit of 25 to 33 per cent, prior to restructuring. One
of the key challenges for the GENCO was to take up massive capacity addition
programme in the State. After restructuring, HPGCL has added around 724
MW in a period of six years. The State now has a total installed capacity of
1,587.40 MW.
The State has formulated a strategy for capacity addition in the State sector as
well as through participation of independent power producers (IPP). At present,
a generating station of 600 MW capacity is under construction at Yamuna
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