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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
levels, coupled with the high level of T&D losses is pushing the State power
sector into a severe financial crisis, so much so, that the companies are unable
to pay for adequate power purchased from Central Utilities and State
generation entities. This, in turn, is leading to financial un-viability of the
generation sector as well. Hence, the State Government needs to institute
requisite mechanisms to ensure timely settlement of these dues.
Augmentation of Supply: The State is facing a severe supply shortage. The
quality of supply throughout the State is extremely erratic and pitiful. The poor
supply situation is adversely affecting industrial and commercial growth in the
State, and in turn, hampering economic development of the State. The State
needs to augment its generation capacity urgently, to improve the supply
position. This is even more vital in view of the State taking considerable
initiatives in creating a rural distribution infrastructure under the RGGVY. The
benefits of investments made under the RGGVY would not be visible until
there is adequate power in the system to cater to the increased demand in the
State from the newly electrified rural areas. PPA in respect of 1,000 MW
Anpara-C Expansion Project has recently been signed with M/s LANCO
Power. There are also talks of considerable capacity creation by M/s Reliance
Energy Limited in the State. The State needs to ensure that such capacity
creation gets off the ground at the earliest possible to meet the National plan
target of power for all by 2012.
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