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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 />

The thrust <strong>of</strong> State Government’s reform initiatives is based on the<br />

Medium Term Fiscal Reform Programme that it concluded with<br />

Government <strong>of</strong> India in 2000-01.<br />

Q.4. Was the policy reviewed/modified midway? Reasons for modification<br />

and changes carried out may please be provided.<br />

Answer - State Government’s policy for the restructuring <strong>of</strong> its PSUs has not yet<br />

been reviewed. The policy is sufficiently dynamic and necessary<br />

modifications have been incorporated in Action Plans as they have<br />

evolved.<br />

Q.5. The progress in reforms made so far. Is the progress <strong>of</strong> implementation<br />

as planned? If not what are the reasons for slippages? What is the<br />

implementation schedule – Promised, Planned and Actuals? Reasons for<br />

shortfalls? What is being done to speedup implementation?<br />

Answer - The power sector reform agenda <strong>of</strong> the State Government, envisaged the<br />

consultative evolution <strong>of</strong> recommendations for:<br />

(a) The optimal industry structure in respect <strong>of</strong> the three power<br />

Utilities, keeping in view the changed business environment<br />

in the context <strong>of</strong> the EA, 2003;<br />

(b) Resolving, at least cost, the critical financial problems <strong>of</strong> the<br />

sector including the financial restructuring measures<br />

necessary to start the new entities on a path <strong>of</strong> financial<br />

viability, keeping in view their investment plans, potential<br />

revenue earning capabilities and liabilities, including loan<br />

liabilities;<br />

(c) Framing <strong>of</strong> business optimisation plans for the Utilities<br />

concerned (including power trading activities <strong>of</strong> the<br />

WBSEB and coke-oven and other non-power activities <strong>of</strong><br />

the (DPL) so that they may achieve a zero-loss position by<br />

the year 2006-07 and thereafter consistently earn suitable<br />

return on investments on a sustainable basis while ensuring<br />

better services to their customers; and<br />

(d) Critical governance initiatives that will best realise<br />

short/medium-term business projections and lead to the<br />

restructured Utilities achieving higher commercial<br />

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