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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
sector. Realising the gravity of the situation, the State Government decided to
go in for reform and restructuring of APSEB.
2.2 BACKGROUND
2.2.1 High Level Committee
Realising the need for reform and restructuring of APSEB, in January 1995, the
State Government appointed a High Level Committee headed by Shri Hiten
Bhaya, ex Member, Planning Commission, to study and report on the issues of
restructuring of power sector, private investments in the industry, guidelines on
tariffs, etc. The High Level Committee, consisting of the following eminent
power sector experts, presented its report to the Government in April 1995:
Shri Hiten Bhaya, Ex-Member, Planning Commission Chairman
Shri N. Tata Rao, Ex-Chairman, APSEB Member
Shri S. Sankara Guru Swami, Ex-Secretary (Energy),
Government of India
Member
Shri K. Balaram Reddy, Chairman, APSEB Member
Shri E.A.S. Sarma, Secretary (Energy), Government of A.P. Member
One of the major recommendations of the Committee was restructuring of
power sector by separating generation, transmission and distribution functions.
The report was immediately placed before the State Assembly for a debate.
2.2.2 Common Minimum National Action Plan
The Government of India had taken several initiatives to revitalise the ailing
power sector in the country including convening a Conference of Chief
Ministers of different States. The outcome of the Conference was the
recognition of the need for reforms in the power sector and enunciating the
steps required to be taken by the State Governments to implement the reforms.
The ‘Common Minimum National Action Plan for Power’ was released by
Government of India after the Chief Ministers’ conference. The Common
Minimum National Action Plan contained among other things:
• Restructuring of SEBs;
• Setting up of an autonomous State Electricity Regulatory Commission;
• Private sector participation in distribution business; and
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