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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
Major stake (51%) in the four DISCOMs were transferred to private operators.
Three of these DISCOMs namely NESCO, WESCO and SOUTHCO, were
acquired by M/s BSES [now Reliance Energy Limited (REL)] in April 1999
and the fourth, namely CESCO, by M/s AES in September 1999. GRIDCO
continues to hold 39 per cent share and 10 per cent is with the Employees
Welfare Trust.
The new structure of the electricity sector in Orissa at that time was as follows:
i) The power generating sources like NTPC, OHPC, OPGC, IPPs and CPPs
were in existence.
ii) GRIDCO purchased power under PPAs from the generating companies
and supplied bulk-power to DISCOMs at a bulk-supply price called BST,
fixed by OERC.
Trading and transmission functions of GRIDCO have been separated with
effect from 1 April 2005, with GRIDCO looking after trading and Orissa
Power Transmission Corporation Limited (OPTCL) looking after transmission
functions.
Privatisation of State Sector Generating Company
In January 1999, 49 per cent share capital of Orissa Power Generation
Corporation (OPGC), with 420 MW thermal generation capacity having face
value of Rs 240.21 crore (approximately), was sold to AES Transpower along
with management control at a cost of Rs 603.20 crore. Another State sector
power generation concern, Talcher Thermal Power Station (TTPS), with a
generation capacity of 460 MW, was sold to NTPC in 1995.
The entire generation of TTPS and OPGC is dedicated to the State of Orissa.
5.3 CURRENT STATUS
Benefits of Power Sector Reforms
I. General
i) T&D losses have been brought down from 50.67 per cent in 1995-96 to
about 41.40 per cent in 2004-05, consequent to restructuring of OSEB.
ii) Tariff is determined by OERC, after a process of public hearing. Although
there was some increase in retail tariff in the initial years of reform, the
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