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

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

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

Government, as well as the improvement targets to be achieved by the<br />

restructured companies, over a long-term period, has also been a unique feature<br />

<strong>of</strong> the reform process.<br />

9.12 WAY FORWARD<br />

GUVNL’s functions <strong>of</strong> purchasing bulk power from the generating companies<br />

and selling in bulk to the DISCOMs at differential tariff, arranging loans from<br />

the market for other restructured companies, and coordination on behalf <strong>of</strong><br />

these companies with the State Government could leave little room for<br />

individual companies in terms <strong>of</strong> operational freedom, deployment <strong>of</strong><br />

innovative ideas, etc. Fortunately, GUVNL is aware <strong>of</strong> this possibility and has<br />

already signed separate individual agreements with each <strong>of</strong> the companies.<br />

However these structures need to be formalised on a long-term basis. Also,<br />

long-term agreements on similar lines <strong>of</strong> FRP need to be finalised with each<br />

company.<br />

GSECL has proposed to carry out Life Extension R&M works <strong>of</strong> about 1,860<br />

MW <strong>of</strong> generating capacity in the next six years which is almost equal to the<br />

proposed new capacity addition. Obtaining assured level <strong>of</strong> performance <strong>of</strong><br />

these machines after R&M is extremely important from considerations <strong>of</strong><br />

achieving expected savings in fuel costs agreed to in FRP. This aspect needs to<br />

be carefully looked into.<br />

GSECL will need to carefully mitigate risks <strong>of</strong> non-availability <strong>of</strong> the required<br />

quantity and quality <strong>of</strong> coal for its generating plants. In future, the company<br />

may be required to own and operate coalmines and coal washeries. Also, longterm<br />

contracts may have to be entered into for imported coal for running its<br />

stations. These aspects need to be looked into carefully and suitable actions<br />

taken in time.<br />

Presently, a large number <strong>of</strong> interconnection metering points have been<br />

identified for introducing ABT operation. This is because <strong>of</strong> a single 66 kV<br />

meshed network for the entire State and a number <strong>of</strong> 66 kV lines traversing<br />

between the areas <strong>of</strong> operation <strong>of</strong> individual DISCOMs needing provision <strong>of</strong><br />

meters at interconnections.<br />

In order to simplify ABT operation, efforts should now be made to plan the 66<br />

kV network in such a manner that the interconnection <strong>of</strong> transmission lines<br />

103

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