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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
consumption has also reduced from 10.8 per cent in 1998-99 to around 9.9 per
cent in 2004-05
Key Concerns
Power Shortages: The deficit has been as high as 28 per cent for peak demand
and 23 per cent for the energy shortages in April 2006. The State is highly
dependent on the allocation from central sector power projects and sources
around 35 per cent of their requirements from them. MPEB had a capacity of
about 4,260 MW in 1999-2000. After reorganisation of the State, installed
generating capacity left in the State was about 2,940 MW. There was only a
marginal increase of about 50 MW hydro capacity. However, with regard to the
thermal capacity, there has been no further addition since 2002-03. Projects
with a total capacity of 770 MW are under construction and are likely to be
commissioned by the end of Tenth Plan. Government of MP has set-up an
ambitious target to eliminate power shortages by 2008-09. The State is likely to
get the benefit of capacity addition of 2,890 MW during the Eleventh Plan.
This would entail investments to the tune of Rs 13,000 crore. It is, however, not
clear as to how these resources would be raised by the Utilities or the State
Government.
Loans from Financial Institutions: MPGENCO is finding it difficult to obtain
loans from FIs and PFC. Future loans are being linked to the performance of
the DISCOMs. The State Pollution Control Board has imposed restrictions on
some of MPGENCO’s existing units due to high level of emissions; which the
MPGENCo feels is attributable to poor quality of coal and limitation of space
for extension of Electrostatic Precipitator fields.
R&M Programme: More than 60 per cent of the generating stations in the
State have served for a period of 25 years or more. The generating stations
need overhaul and are in urgent need of renovation and modernisation (R&M).
In case of joint venture projects like Satpura Power House, the need for
obtaining the consent of the partner State has delayed the taking up of R&M
activities. This and similar other issues, relating to pollution control, would
require intervention and coordination of the concerned Central Ministries.
The SERC has taken serious note of under-utilisation of the approved funds
allowed in the ARRs. The Commission has refrained from clawing back the
amount retained and not utilised for R&M purposes in the previous years. It is
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