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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
(TRANSCO) and the following four distribution companies (DISCOMs) were
created:
• Paschimanchal Vidyut Vitaran Nigam Limited, Meerut
• Dakshinanchal Vidyut Vitaran Nigam Limited, Agra
• Madhyanchal Vidyut Vitaran Nigam Limited, Lucknow
• Poorvanchal Vidyut Vitaran Nigam Limited, Varanasi
The Central Government set in motion the reform process in the power sector
in the States by notifying the Electricity Regulatory Commissions Act, 1998, in
July of that year. The Uttar Pradesh Electricity Regulatory Commission
(UPERC) was established under the provisions of this Central Act in
September 1998.
To enable the newly carved out entities to start on a clean slate, the State
Government wrote off/assumed massive liabilities of more than Rs 31,300
crore as indicated below:
• Government of UP loan and accrued interest written off Rs 20,116 crore
• Adjustments for transfer of Unchahar Plant to NTPC Rs 919 crore
• CPSU liabilities retained by Government of UP Rs 2,515 crore
Further, the financial commitments taken over by the State Government during
the restructuring of UPSEB are indicated below:
• Terminal liabilities retained by Government Rs 6,176 crore
• GPF liabilities Rs 1,634 crore
7.4 Current Status of Reforms
The restructuring of power entities was expected to lead to focussed
interventions in each of the individual functions to improve operational and
financial performance, encourage investments and improve quality of supply to
the consumers. The performance of these restructured entities from 2000-01
onwards on key performance indicators is briefly summarised below:
Demand-Supply Deficit: The State had been facing huge energy and peak
shortages at the time of reform of the sector. The peak load deficit prevailing in
the State was in excess of 30 per cent up to 1998-99. However, the peak deficit
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