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

2.2.4 Financial Parameters
Key Concerns
Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
The variable cost of generation is increasing rapidly for HPGCL plants. While
the variable component was 67 per cent of the total cost of generation in 1999-
2000, the same was 72 per cent in 2004-05. The generation cost per unit has
increased from Rs 2.14 in 2001-02 to Rs 2.67 in 2004-05.
Since HPGCL was supplying power to HVPNL, HERC has allowed only the
operational expenses as pass through. It is only after enactment of the
Electricity Act, 2003, that HPGCL was subjected to tariff approval by HERC.
HPGCL has a substantial loan portfolio from the new projects
undertaken/planned by it. As on April 2006, HPGCL loans are of the order of
Rs 3,200 crore of which secured loans are Rs 665 crore only. As regard losses,
though the position has not deteriorated, HPGCL has not turned into a profitmaking
company. Now it is time for HPGCL to ask for return on equity and get
the admissible return, so that, in course of time, it is transformed into a profitmaking
entity.
2.3 TRANSMISSION
2.3.1 Transmission Network
Key positives
HVPNL has a transmission network of about 5,596 ckt km consisting of 220
kV, 132 kV and 66 kV lines. Prior to restructuring, the transmission system
comprised mainly of 66 kV and 132 kV transmission lines and sub-stations.
HVPNL has added a significant number of sub-stations and the associated lines
to augment and expand the transmission network within the State. The
transmission system augmentation is being planned over 132 kV and 66 kV
systems and 220 kV for more efficient operations and to increase the voltage
level for transmission, which, in turn, would reduce the losses in the network.
The trend shows that the number of sub-stations have increased as under:
• 220 kV substations by around 50 per cent;
• 132 kV by 56 per cent; and
• 66 kV by 41 per cent.
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