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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
first step. With this in view, a generating company named ‘Gujarat State
Electricity Corporation Limited’ (GSECL) was incorporated by GEB in August
1993 under the Companies Act, 1956. To start with, construction of GEB’s
Wanakbori Unit No 7 and Gandhinagar Unit No. 5 was taken over by this
company. The company could raise around Rs 800 crore from the market. The
company was able to repay all its debts and became a profit-making company.
The assets/liabilities of the remaining generating stations of the GEB were
transferred to this company after the restructuring of GEB.
Thereafter, as a part of an agreement reached with the Asian Development
Bank (ADB), while negotiating the Gujarat Power Sector Development
Programme Loan, in May 1999, Government of Gujarat incorporated ‘Gujarat
Energy Transmission Corporation Limited (GETCL) under the Companies Act,
1956. Unlike GSECL, GETCL did not have any assets transferred to it from
GEB at the time of incorporation. GETCL has acquired all assets/liabilities of
GEB pertaining to transmission, only after restructuring of GEB.
From the above, it would be noted that corporate structures for generation of
electricity and for transmission of energy were in place for quite some time
even before GEB was restructured.
Chronology of Events
The major events associated with the restructuring process are noted below.
Besides these, a number of supporting actions were taken by Government of
Gujarat and GEB to ensure that the programme of restructuring of GEB was
carried out smoothly without any obstructions.
Promulgation of Gujarat Electricity Industry (Reorganisation &
Regulation) Act 2003
May 2003
Government of Gujarat directs GEB to form Four DISCOMs August 2003
Signing of Tripartite Agreement between Government of Gujarat, GEB
and six recognised Unions and Associations in GEB
October 2003
Government of Gujarat notifies Scheme of Transfer of Assets to
GSECL, GETCL, Four DISCOMs and the Residual GEB
October 2003
FRP submitted to Government of Gujarat. A new Company named December
‘Gujarat Urja Vikas Nigam Ltd’ (GUVNL) was formed and provisional 2004 to
opening balance sheets of all companies notified.
March 2005
Formation of Committee for FRP and operationalisation of companies April 2005
Government of Gujarat approves the FRP
December
2005
Government of Gujarat notifies the final balance sheets of all the
companies
May 2006
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