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

Particulars 1996
-97
Long-term
loan
Short-term
loan
Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
Table 6.10: Year-wise Position of Loans Raised (Rs in crore)
Pre-Restructuring Post-Restructuring
1997
-98
1998
-99
1999
-00
72
2000
-01
2001
-02
2002
-03
2003
-04
2004
-05
837.88 942.62 1,025.78 1,160.02 1,459.00 1,584 1,923 1,001 1,218
- 50.00 348.00 810.00 1,085.00 1,725 2,233 2,681 2,681
Total 837.88 992.62 1,373.78 1,970.02 2,544.00 3,309 4,156 3,682 3,899
Both the Long-term and short-term loans in the post-restructuring period have
been found to be substantially higher than those in the pre-restructuring era.
With rising T&D losses and increasing cases of electricity theft, financial
losses are showing an increasing trend. During the four-year period of prerestructuring,
total loans obtained by RSEB amounted to Rs 5,175 crore. Shortterm
loans are rising faster than the long-term loans. Long-term loans can be
justified for capital investment and asset creation but short-term loans are
merely indicative of deficit funding. Very often, funds are borrowed merely to
repay previous loans. This is not a positive trend.
6.4 DEBT SERVICING
The burden of debt servicing is indeed staggering. From a figure of Rs 2,015
crore at the time of restructuring, the debt servicing liability has reached Rs
4,559 crore.
6.5 REDRESSAL OF CONSUMER GRIEVANCES
The grievance redressal mechanism, except the Settlement Committees, is very
weak. Purely internal committees of the DISCOMs may not inspire confidence
among the consumers. Since Section 42, of the EA, 2003 lays down that prior
to approaching the Ombudsman, the channel of internal committee must be
exhausted; this provision has tended to minimise the role of the institution of
Ombudsman. Out of three Ombudsman appointed in Rajasthan, one
Ombudsman has not handled any case and another Ombudsman has decided
just one case and the third Ombudsman has decided only four cases so far.
There should be only one channel to be crossed before the consumer can
approach the Ombudsman. In order to check deliberate delays at the level of