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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
suggest the broad future course for bringing in necessary reforms. As a part of
building consensus, in April 2002 itself, Government of Maharashtra had
initiated public discussions/dialogue with all stakeholders on the ERC Report,
Maharashtra Electricity Reform Report (draft) and Government of India’s
Electricity Bill, 2001. The Minister in charge of Energy held wide-ranging
discussions with officials and staff unions of MSEB. After such a detailed
journey, the White Paper highlighting the reform agenda was published.
This process was thus unique and cannot be faulted. Had the Government not
dithered, and the process taken to its logical conclusion in the year 2003 by
winning the support of the staff along with, it could have been successful.
10.9 WAY FORWARD
The single most important task ahead of the State Government and the
restructured companies is to take immediate steps to identify the extent of
capacity additions in generation, transmission and distribution sectors on a
long-term basis and set-up action plans to implement the same in a time-bound
manner.
It will be necessary to clearly specify the role expected to be played by each
entity to ensure operational freedom from each other, free of interference, to
achieve desired results.
10.10 RECOMMENDATIONS
10.10.1 Capacity Planning
As a first step, it is necessary that all above named entities review the financial
needs of the sector in the period till the year 2012 and agree on the support that
will be extended by the State Government in terms of equity funding, grants,
long term loans, RE subsidy, etc., and the funds required to be sourced from the
market. The companies will have to give an assurance about estimated financial
gains by savings in expenses, improvements in performance parameters in
terms of PLF, reduction in AT&C losses, improvement in services to
consumers, etc. A plan of funding could then be firmed up for implementation.
This exercise should be completed as soon as possible so that each entity is
aware about the support it can expect from the others and can take suitable
actions to supplement its remaining requirements. The companies will have to
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