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

CHAPTER - 6
RAJASTHAN
6.1 BACKGROUND, OBJECTIVES AND METHODOLOGY ADOPTED
Rajasthan Power Sector Reforms Bill, 1999 was passed by the State Legislature
on 25 September 1999. The Act has been brought in force w.e.f. 1 June 2000.
With the notification of the Rajasthan Power Sector Reforms Transfer Scheme
2000 on 19 July 2000, the assets, liabilities and personnel of the Rajasthan
State Electricity Board (RSEB) were transferred to the newly-formed five
companies namely a generation Company (RRVUNL) a transmission company
(RRVPNL) and three DISCOMs, viz., Jaipur VVNL, Ajmer VVNL, and
Jodhpur Vidyut Vitaran Nigam Limited (VVNL). With this, Rajasthan became
the first State in the country to have completely separated all the three
functions, hitherto carried out by the integrated State Electricity Board, in a
single stage. These companies have been incorporated under the Companies
Act, 1956.
Chronology of major events in the process is as under:
Table: Chronology of Events
Reform Policy Statement May 1999
Reform Bill passed September 1999
Regulatory Commission set up January 2000
Single Stage Restructuring (GENCO, TRANSCO and 3
DISCOMs)
July 2000
First set of Tariff Orders by RERC March 2001
MoU signed between Ministry of Power, Government of India
March 2001
and Government of Rajasthan
Revised Financial Restructuring Plan (FRP) approved August 2003
Updation of revised FRP November 2005
Generation and Transmission
The generation wing in Rajasthan has all along performed very well even
during the pre-restructuring period. Its performance has also been recognised at
the national level. Bronze and silver medals were awarded to Kota Thermal
Power Station (KTPS) during the pre-restructuring period also. For excellent
performance, Gold shield was awarded on 24 August 2004 to KTPS and
Suratgarh Thermal Power Station (STPS).