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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
• Provision of good consultancy support by M/s ICICI, SNC Lavalin
(Canada), PricewaterhouseCoopers, Arthur Anderson, NERA and others.
1.2 MILESTONES
Important milestones in the implementation of power sector reforms in Andhra
Pradesh are:
• Entering into tripartite agreements with the employee associations and
unions.
• Enactment of Andhra Pradesh Electricity Reform Act, 1998 (Act No. 30
of 1998 of Andhra Pradesh) and creation of Andhra Pradesh Power
Generation Corporation (APGENCO) for generation function and Andhra
Pradesh Transmission Corporation (APTRANSCO) for transmission and
distribution functions from 1 February 1999.
• Establishment of Andhra Pradesh Electricity Regulatory Commission on 1
April 1999.
• Creation of four separate DISCOMs, namely EPDCL (headquarters,
Visakhapatnam), NPDCL (headquarters, Warangal), CPDCL
(headquarters, Hyderabad and SPDCL (headquarters, Triupati) as
subsidiaries of APTRANSCO.
• Conferring financial autonomy on the DISCOMs.
• APTRANSCO withdrawing from the power trading function and
entrusting the responsibility of purchasing bulk power directly from the
generating companies to the DISCOMs.
1.3 GENERAL FINDINGS AND LESSONS LEARNT
The general findings and lessons learnt regarding specific issues in the power
sector reform and restructuring process in Andhra Pradesh are discussed below:
1.3.1 Political Support
Andhra Pradesh was fortunate in getting strong political support for the power
sector reforms from the beginning. Shri N.T. Rama Rao, the then Chief
Minister of Andhra Pradesh, took the initiative in 1995, by appointing a High
Level Committee to study and report on the ways and means to restructure the
SEB. In 1997, the Government came out with a policy statement on reforms
and restructuring of the power sector. The Government actively supported the
1.10