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

4.1.7 Reorganisation of the State
Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
The State Government believes that while 12 per cent of the generic and
project related liabilities were transferred to Chhattisgarh and 88 per cent of
this burden was put on MPSEB, which according to them was grossly unfair
and has resulted in undue burden on the restructured Utilities of Madhya
Pradesh.
4.1.8 Liabilities Taken Over by Government of Madhya Pradesh
Based on the recommendations of Montek Singh Ahluwalia Committee, the
Government of Madhya Pradesh has already issued bonds worth Rs 2,663.89
crore for one-time settlement of dues to NTPC, PGCIL, NPCIL, WCL and
SECL. It was reported that, in addition to the above, the State Government took
over liabilities of MPSEB to the tune of Rs 4,431 crore. However, this
additional liability of the State Government does not appear to be part of the
transfer scheme assets and taking over of liabilities.
4.1.9 Government Subsidy
MPSEB is heavily dependent on subsidy support from the State Government.
The amount of subsidy was around Rs 794 crore in 2004-05 (about 15 per cent
of the revenue earned by the DISCOMs from sale of power). This dependence
is expected to increase, as the State Government would provide subsidy to
agricultural consumers of MPSEB as well as for meeting the revenue deficit of
the DISCOMs under the FRP. However, the additional subsidy burden could be
a constraint on the State’s finances.
4.2 CURRENT STATUS Of REFORM PROCESS
4.2.1 Generation
Key Positives
On the technical side, MPPGCL has been able to improve the PLF of its
generating stations from 46 to 66 per cent during the period 1992-93 to 1997-
98 to a level of 70 to 73 per cent, from 1998-99 onwards. Similarly, the
availability of generating stations has increased from the level of 75 per cent in
1995-96 to 87 per cent during 2004-05. There has also been a reduction in the
specific oil consumption in thermal power stations. The consumption has come
down from 4.57 ml/kWh in 2001-02 to 2.44 ml/kWh in 2004-05. The auxiliary
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