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

5.7 WAY FORWARD AND RECOMMENDATIONS
Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
• Orissa was the first State in the country to go in for reforms in the
electricity sector. OERC was the first Regulatory Commission.
Restructuring of the sector was taken up in right earnest. The results have
been generally positive.
• Assets were over-valued by the Government of Orissa. This situation was
corrected by the Kanungo Committee by postponing the revaluation of
assets by five years, which is just over. Such revaluation should be
postponed by another five years, as recommended by the OERC.
• DISCOMs have project-related liabilities to the tune of Rs 660 crore.
They are not making any payment to GRIDCO in this regard. They will
have to do it by increasing their collection efficiency. Arrear receivables
of Rs 1,500 crore including Delayed Payment Surcharge remain payable
by the DISCOMs. If they collect old dues, they can retain 50 per cent and
the rest will have to be paid to GRIDCO. If all bills are scrutinised, a lot
of bogus and uncollectable dues would be found This can be written off.
For revised billing, no Delayed Payment Surcharge should be charged.
• The super-cyclone of 1999 caused severe damage to the electricity
distribution infrastructure in the coastal areas of the State. Had there been
no privatisation, the Government would have paid the cost of restoration
of the infrastructure. But nothing was paid to the DISCOMs from the
Calamities Relief Fund. In quite a few villages, even restoration work has
not been undertaken. A lot of dues relating to the coastal districts will
have to be written off after proper scrutiny.
• Orissa is prone to natural calamities. Hence, the State will have to support
the power sector in restoring assets to the pre-calamity levels
• The four DISCOMs should arrange funds from the financial institutions,
duly guaranteed by the promoter companies, in order to take up system
improvement works. Once they undertake such improvement works, they
would be able to avail of APDRP benefits. At present, only CESCO is
doing it.
• Dues of the State Government to PSUs amount to Rs 250 crore. A special
reconciliation drive should be undertaken with the initiative of the State
Government and prompt payment made. Government dues should be paid
directly to OHPC, leading to accounting adjustments between GRIDCO
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