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

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CHAPTER - 7 UTTAR PRADESH 7.1 FACTORS LEADING TO REFORMS Power serves as a vial input for economic development of the State. It is, therefore, imperative that the sector remains financially viable and commercially sustainable at all times. Uttar Pradesh, one of the largest States in the country, is well endowed with natural resources. The State has, however, lagged behind in economic development. Lack of quality and reliable power at competitive rates to commercial and industrial consumers to meet their growing needs is one of the key factors hampering its economic development during the last two decades. The vertically integrated Uttar Pradesh State Electricity Board (UPSEB) had been managing all the three functions of generation, transmission and distribution in the State. UPSEB was facing problems like: • Poor energy accounting systems; • High technical and commercial losses; • High proportion of unmetered consumption; • Inadequate cost coverage through tariffs; and • Undue interference in determination of tariff by the Government. The poor operating practices prevailing in UPSEB consistently eroded its net worth, leading to inadequate capacity addition in generation and poor maintenance of transmission and distribution (T&D) infrastructure. The tariffs for commercial and industrial consumers were heavily subsidising the consumption of domestic and agricultural consumers and reached unsustainable levels. This was resulting in poor growth in the consumption of subsidising categories while the consumption in the subsidised categories was increasing at a rapid pace. This led to consistent deterioration of financial condition of UPSEB through the 1980s and early 1990s. This needed massive financial support from the Government and appropriate interventions for its operations. During the late 1990s, the State Government initiated the process of power sector reforms in the State.
7.2 Objectives of Reform Synopsis of State Reports (Vol.-IV) Study on `Impact of Restructuring of SEBs’ The State Government declared its Revised Energy Policy in 1999 with a clear road map for restructuring of the State power sector. The objective of the policy was to restore the credit-worthiness of the power sector and to create an environment, which would attract private investments, promote competition and efficiency and facilitate sustainable development of the sector. The main principle of the reform programme was to have commercially operated Utilities functioning in a competitive and appropriately regulated power market. In this framework, the State Government declared “UP Power Sector Reform Act, 1999”. The mission statement of UP power sector restructuring programme included the following: • Electricity to be supplied under the most efficient conditions in terms of cost and quality to support the economic development of the State; • The power sector would cease to be a burden on the State's finances and eventually become a net generator of financial resources; and • Protection of consumers’ interests. The power sector reform aimed to achieve the following: (a) Restructuring of UP State Electricity Board by segregating generation, transmission and distribution functions into autonomous and separately accountable entities, through transfer of assets, liabilities and personnel; (b) Corporatisation and commercialisation of the resultant entities in a phased manner; (c) Establishment of an independent Regulatory Body; (d) Promoting private sector participation in power generation and distribution; and (e) Rationalisation of tariff towards full cost recovery and reduction of cross subsidies. 7.3 Methodology Adopted by the State Government The Government of Uttar Pradesh, vide its Notification dated 14 January 2000, brought into effect the Uttar Pradesh Electricity Reforms Act, 1999 and the Uttar Pradesh Electricity Reforms Transfer Scheme, 2000. 78
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FOREWORD Electricity is the most ve
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PREFACE The country has been regist
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Performance of Generating Companies
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S.No. Parameter Uttar Pradesh - 199
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Voltage Level 400 kV 220 kV Annexur
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Transmission Sub-Station Capacity A
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Parameter 1995-96 1996-97 1997-98 1
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Parameter 1995-96 1996-97 1997-98 1
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STATES/UTs 1990-91 1991-92 1992-93
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Commercial Profit/Loss (with Subsid
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Rs crore 45000 40000 35000 30000 25
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Rs crore 60 50 40 30 20 10 % of Los
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Percentage Commercial Losses of Sta
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Percentage 25 20 15 10 5 0 -5 Perce
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Per Capita Consumption of Electrici
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Percentage 70.00 60.00 50.00 40.00
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CONTENTS Executive Summary.........
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National Report (Vol.-II) Study on
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6.27 Encouragement to Non-Conventio
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CHAPTER - 2 WAY FORWARD Way Forward
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1 INTRODUCTION ANDHRA PRADESH EXECU
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Andhra Pradesh The bulk supply trad
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Andhra Pradesh 1.5.3 Distribution 2
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Andhra Pradesh 1.5.5 Customer Servi
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Andhra Pradesh CHAPTER 1 GENERAL FI
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Andhra Pradesh publicity campaign u
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Andhra Pradesh • Standards of per
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Andhra Pradesh individuals but by o
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Andhra Pradesh • Improved custome
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Andhra Pradesh 2.1 INTRODUCTION CHA
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Andhra Pradesh • Tariff for agric
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Andhra Pradesh APTRANSCO handled th
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State Reports (Vol.-III) Study on `
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4.1 GENERATION State Reports (Vol.-
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4.1.2 Operational Efficiency State
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4.3.5 Billing and Collection State
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4.3.10 Network Development State Re
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4.3.15 Power supply to Agricultural
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TABLE OF CONTENTS EXECUTIVE SUMMARY
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STATUS OF PERSONNEL DISPERSAL Estab
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GENERAL MADHYA PRADESH EXECUTIVE SU
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Madhya Pradesh Liabilities Taken Ov
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Madhya Pradesh to high level of emi
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Madhya Pradesh Collection Efficienc
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Madhya Pradesh in 27 divisions of s
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Madhya Pradesh 2,940 MW of generati
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Madhya Pradesh 1. GENERAL OVERVIEW
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Madhya Pradesh Pradesh, but functio
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Madhya Pradesh 1.5.1 Key Features o
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Madhya Pradesh Details of FRP for t
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Madhya Pradesh 1.7.1 Functions of t
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Madhya Pradesh (b) All the cash col
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Madhya Pradesh 2. GENERATION 2.1 MA
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Madhya Pradesh on R&M activities to
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Madhya Pradesh 3200 3150 3100 3050
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Madhya Pradesh • A number of MOUs
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Madhya Pradesh 3.2 OPERATIONAL PARA
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Madhya Pradesh addition and strengt
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Madhya Pradesh 3.7.2 Transmission C
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Madhya Pradesh DISCOM wise Energy R
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Madhya Pradesh 2000-01 to 79 per ce
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Madhya Pradesh 4.1.3 Subsidy Suppor
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Madhya Pradesh While MPERC, in the
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Madhya Pradesh The State Government
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Madhya Pradesh Due intelligence and
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Madhya Pradesh 7. Electricity Act 2
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Madhya Pradesh In regard with the R
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Madhya Pradesh 8.5.2 Directives Iss
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Madhya Pradesh agricultural consume
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Madhya Pradesh and rationalisation
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Madhya Pradesh is felt that the int
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TABLE OF CONTENTS Background ......
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C. Employees Considerations State R
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Nov. 1995 The Orissa Electricity Re
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Particulars State Reports (Vol.-III
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1 INTRODUCTION ASSAM RESTRUCTURING
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Assam supply bottlenecks and low qu
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Assam (i) To supply adequate quanti
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Assam payment to the existing pensi
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Assam About 1.61 lakh below poverty
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Assam associated TCS on this assign
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Assam Table: Financial Settlement a
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Assam The Strategy is also to have
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Assam to achieve 100 per cent elect
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Assam 12.2 State Government Policy
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Assam The Report is based on the in
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DISTRIBUTION SYSTEM................
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DISTRIBUTION Key Concerns State Rep
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HARYANA STATE PROFILE 2 State Repor
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4000 3500 3000 2500 2000 1500 1000
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Demand Projections State Reports (V
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Short Term/ Unscheduled Interchange
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% Damage 30.0% 25.0% 20.0% 15.0% 10
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Theft Reduction Measures State Repo
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ACS* State Reports (Vol.-III) Study
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Capital Expenditure State Reports (
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Collection State Reports (Vol.-III)
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Directives Issued by the Commission
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DISTRIBUTION State Reports (Vol.-II
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There are wide variations in the tr
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2.70 Annexure-III
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Power Utility Project name APDRP po
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BACKGROUND GUJARAT Till the year 19
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Gujarat assets transferred to it fr
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Gujarat • The transfers of the pe
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Gujarat communication to employees
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Gujarat The following table gives f
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Gujarat OTHER IMPORTANT SUPPORTING
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Gujarat NOTEWORTHY INITIATIVES IN P
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Gujarat It has opened up a number o
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Gujarat • GSECL 8 Power stations
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Gujarat E-URJA PROJECT This is yet
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Gujarat OTHER ACTION POINTS In the
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Gujarat Investments Made to Improve
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Gujarat Investments Made to Improve
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Gujarat Performance Parameters of D
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Gujarat Category of connection % Ch
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Gujarat Details of Arrears of Reven
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Gujarat Payment of bills is accepte
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Gujarat Important Data about Indivi
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Gujarat Paschim Gujarat Vij Company
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INTRODUCTION State Reports (Vol.-II
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Highlights of the Transfer Scheme S
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Adjustments in current liabilities
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GENERAL COMMENTS State Reports (Vol
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Ageing of Generating Units State Re
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Proposed Capacity Additions State R
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DISTRIBUTION Introduction State Rep
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Consumer category and consumption s
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Billing and Collection Efficiency P
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Year State Reports (Vol.-III) Study
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INTRODUCTION TAMIL NADU The Tamil N
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Tamil Nadu Financial Position of th
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Tamil Nadu Strengths of the Board T
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Tamil Nadu Board and the Government
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Tamil Nadu obligations of all the p
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Tamil Nadu • The progress in rura
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Tamil Nadu What is the energy cost
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Billing efficiency Tamil Nadu Detai
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Tamil Nadu Preventive action and pr
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Tamil Nadu iv) Information received
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Tamil Nadu Service to Consumers i)
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Tamil Nadu Reform Measures Action t
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TABLE OF CONTENTS Background ......
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iii) Bakreswar TPP Units 4 and 5 (2
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POWER UTILITIES IN THE STATE WBPDCL
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TABLE OF CONTENTS RESPONSES FROM ST
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PROGRESS OF REFORMS State Reports (
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COMMENTS State Reports (Vol.-III) S
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DISTRIBUTION LOSSES 1995-96 1996-97
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BILLING AND COLLECTION EFFICIENCY C
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COMMENTS State Reports (Vol.-III) S
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Year-wise Position of Loans Raised
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Direct jurisdiction of Ombudsman in
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DISTRIBUTION Professional Directors
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OBJECTIVE OF REFORMS EXECUTIVE SUMM
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Uttar Pradesh auxiliary consumption
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Uttar Pradesh one-man-one-post to f
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Uttar Pradesh The power sector refo
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Uttar Pradesh In the second phase o
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Uttar Pradesh GENERATION SECTOR OVE
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Uttar Pradesh CGS Stations Capacity
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Uttar Pradesh Sec. Oil Consumption
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Uttar Pradesh TRANSMISSION AND DIST
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Uttar Pradesh been increasing consi
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Uttar Pradesh The State should also
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Uttar Pradesh The figures of distri
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Uttar Pradesh SUBSIDY SUPPORT FROM
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Uttar Pradesh 2500 2000 1500 1000 5
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Uttar Pradesh Particulars Financial
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Uttar Pradesh created under the fir
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Transformation Capacity at Grid Sub
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GROUP-1 STATES SYNOPSIS OF STATE RE
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Synopsis of State Reports (Vol.-IV)
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Operational Efficiency Synopsis of
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2.1.1 Chronology of Restructuring S
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2.2.4 Financial Parameters Key Conc
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Anti Theft Measures Synopsis of Sta
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Answer (a) Better and sustainable s
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