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

3.11 ACHIEVEMENTS OF THE NEW COMPANIES
Year
Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
The most notable achievements of the restructured Utilities are:
• Substantial reduction in transmission losses by KPTCL and bringing it to
the level of 4.18 per cent (which is regarded as one of the best in the
country);
• Generating capacity addition from KPCL and other sources;
• Gradual reduction of T&D and AT&C losses by the DISCOMs;
• General progress in metering, billing and collection for all categories
except for the agricultural segment;
• Increasing investments to improve the overall quality of power supply;
and
• Better customer care with a grievance redressal mechanism and higher
level of satisfaction.
The restructured companies are also more viable units for managerial control
and efficiency. During the past three years from 2002-03 to 2004-05, the
general financial performance of the DISCOMs has shown some improvement,
in terms of profit after tax and cash profit, as shown in Table 3.2. However,
two of these companies, namely, HESCOM and GESCOM, which have larger
agricultural consumers, are receiving huge subsidies for their survival, and
need to be monitored closely. Another area of concern is the heavy arrears in
revenue, which also needs close attention.
PAT
(accrual
basis)
Table 3.2: General Financial Performance
Cash Profit
(accrual, excl.
depreciation and
write-offs)
Cash Profit
(subsidy
received
30
basis)
Cash Profit
(revenue &
subsidy on
realised basis)
(Rs crore)
Loss
without
subsidy
2002-03 340 943 849 103 (1,599)
2003-04 310 1,034 689 412 (1,315)
2004-05 462 1,259 1,092 621 (1,107)
Total 1,112 3,236 2,630 1,136 (4,021)
(Source: PFC)
On the downside, however, they have not succeeded in key areas such as
universal metering (especially for irrigation pumpsets), billing and collection