04.08.2013 Views

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

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

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

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

Synopsis <strong>of</strong> State <strong>Report</strong>s (Vol.-IV)<br />

Study on `Impact <strong>of</strong> Restructuring <strong>of</strong> SEBs’<br />

objectives <strong>of</strong> the reforms, efficiency improvement agenda, etc. The Chairman<br />

sent a personal communication to all employees highlighting related issues and<br />

the importance <strong>of</strong> their whole-hearted and active participation in the process. A<br />

set <strong>of</strong> champions and trainers were created from amongst the staff to spread the<br />

message to their colleagues. Structured meetings were held with<br />

unions/associations regularly to sort out misunderstandings, if any. These<br />

efforts also helped in no small measure in the smooth restructuring <strong>of</strong> GEB.<br />

9.7 CURRENT STATUS OF RESTRUCTURING<br />

The assets <strong>of</strong> the erstwhile GEB were transferred to six companies, namely:<br />

Gujarat Electricity Generation Corporation Limited (for all generating station<br />

assets), Gujarat Energy Transmission Corporation Limited (for all transmission<br />

assets), and four DISCOMs: Dakshin Gujarat Vij Company Limited (DGVCL),<br />

Madhya Gujarat Vij Company Limited (MGVCL), Paschim Gujarat Vij<br />

Company Limited (PGVCL) and Uttar Gujarat Vij Company Limited<br />

(UGVCL).<br />

As per the initial transfer scheme, the residual GEB was to retain certain<br />

functions in respect <strong>of</strong> bulk purchase <strong>of</strong> electricity and sale to DISCOMs,<br />

residual assets pertaining to Load Despatch Centre and those that had remained<br />

after the transfer to other entities. Since trading <strong>of</strong> electricity is a licensed<br />

activity under the EA, 2003, it became necessary to transfer this function from<br />

the residual GEB to a corporate entity. Therefore, in December 2004,<br />

Government <strong>of</strong> Gujarat decided to establish a new company under the<br />

Companies Act, 1956 with the name ‘Gujarat Urja Vikas Nigam Limited’<br />

(GUVNL) and transfer all functions/assets, earlier proposed to be kept with the<br />

residual GEB, except the assets pertaining to Load Despatch Centre, which<br />

were transferred to GETCL in the meantime.<br />

9.8 FORMULATION OF FINANCIAL RESTRUCTURING PLAN<br />

The Financial Restructuring Plan (FRP) is one <strong>of</strong> the most important<br />

components <strong>of</strong> the reform agenda. It defines a detailed road map for the<br />

successor entities in their effort in achieving turnaround in the period till the<br />

year 2011 with improvements in their efficiency parameters and support from<br />

Government <strong>of</strong> Gujarat in subsidies and capital infusion.<br />

The commitments from Government <strong>of</strong> Gujarat for the period 2006 to 2011<br />

translate into:<br />

100

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!