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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
vi) OERC should consider MYT schedule, which would help the Utilities like
generating companies, GRIDCO and DISCOMs to embark upon longterm
business plan.
vii) World Bank loan would be passed on by the State Government to
GRIDCO and DISCOMs as 70 per cent loan @ 13 per cent interest per
annum and the balance 30 per cent would be as grant.
viii) Tax-free bonds @ 8.5 per cent interest would be guaranteed by the
Government of Orissa for PFC, REC loans.
ix) There shall be 5 per cent overall reduction of distribution losses every
year starting from 2002-03 to 2005-06 (benchmarking the distribution loss
level of 42.21 per cent in the year 2001-02).
x) Collection efficiency of revenue to be calculated at 85 per cent for 2001-
02 reaching 95 per cent in 2005-06.
xi) Aggressive feeder metering in LV side of DTs should be made within 12-
18 months to identify loss-prone areas. OERC would be requested for
compliance from DISCOMs.
xii) Swapping of Government dues from GRIDCO against its dues from
Government and balance receivables, if any, to be settled.
xiii) Suitable budgetary provisions are made after actual verification for
payment in full of electricity dues of GRIDCO/DISCOMs against various
Departments of the State Government.
xiv) Government would exempt water cess on the volume of water used by
OHPC for generation of electricity.
These decisions have had the desired effect on the health of the DISCOMs and
also GRIDCO.
5.5 SPECIAL AND UNIQUE FEATURES OF THE REFORMS PROCESS
Reforms Process in Two States – Comparison Between Delhi and Orissa
Delhi could avoid the pitfalls as it had taken note of the Orissa experience.
In Orissa, the Government stopped supporting the power sector as soon as
privatisation took place. In Delhi, the Government remained committed to the
success of reforms with a five-year commitment support of Rs 3,450 crore.
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