04.reforms & restructuring

7/29/2019 04.Reforms & Restructuring

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REFORMSAND

RESTRUCTURING


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REFORMS AND RESTRUCTURING

POLICY PRODUCT CULTURESYSTEM STRUCTURE PROCESS


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WHY REFORMS AND RESTRUCTURING(PRE REFORM ERA)

T & D LOSSES VERY HIGH 30-40% (IT IS THEFT & DACOITY)

SHORTAGE OF POWER IN MOST OF THE REGION

WIDE INDISCIPLINE IN GRID OPERATION. FREQUENCY FLUCTUATESFROM 47.5 50.5 HTZ

WIDE VARIATION IN VOLTAGE

FREQUENT BLACK OUTS AND BROWN OUTS

SEBS WERE RUNNING IN LOSS- 2003-03 LOSS FIGURE AROUNDRS.33,000 CR.

STATE SYSTEM HAS NOT BEEN UPGRADED SPECIALLY DISTRIBUTIONNETWORK

SURPLUS MANPOWER BUT NOT OF GOOD QUALITY

POOR DEVELOPMENT OF RURAL INDIA

MORE THAT 1,55 ,000 VILLAGES ARE YET TO BE ELECTRIFIED


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WHY REFORMS AND RESTRUCTURING(PRE REFORM ERA)

EXCESSIVE LOCAL FALIURESAND FAULTS

INEFFICIENT USE OF ELECTRICITY BY THE END CONSUMER

NO ATTENTION TO PERFORMANCE STANDARDS


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NEED OF DISTRIBUTION REFORMS

LOW PRIORITY TO DISTRIBUTOR AS COMPARED TO

GENERATION AND TRANSMISSION

55% ENERGY BILLED

41%ENERGY REALISED

HIGH T&D LOSSES

HIGH SUBSIDY & CROSS SUBSIDY

(7450 CRORES IN 1991-92 & 43060 CRORES IN 2001-02)

LACK OF ACCOUNTABILITY IN DISTRIBUTION SECTOR


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SYSTEMS

AUTONOMY

REGULATORS


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STRUCTURE

GOVERNMENT

JOINT VENTURE

CORPORATISATION

LOCAL BODIES/PANCHAYATS/FRANCHISEES

PRIVATISATION

UNBUNDLING


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POLICYNATIONAL ELECTRICITY POLICY

DISTRIBUTION POLICY

SIX LEVEL INTERVENTION STRATEGY

DSM POLICY

DIRECT CENTRAL GOVT INVESTMENT

TARIFF POLICY

SIGNING OF MOU/MOA/TPA


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PROCESSES

100 % METERING

ENERGY ACCOUNTING AND AUDIT

SEGREGATION OF LOSSES

CREATING PROFIT CENTERS

HVDS

CAPACITORS INSTALLATIONS

SYSTEM AUGMENTATION


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PRODUCTS

ENHANCING CUSTOMER RELATIONSHIP

BIJLEE SUVIDHA KENDRA

DISTRIBUTION AUTOMATION

ERP

SCADA

PRICING

MIS


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CULTURE

ACCOUNTABILITY

PENALISATION

PROFESSIONALISM

INCENTIVES

CAPACITY BUILDING

NO WORK NO PAY

TRANSPARENCY


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GOAL OF REFORMSElectricity available to all households in next five

years.

Meet the demand fully.

Improve reliability and quality of power to

specified standards.

Raise the per capita availability of electricity to

1,000 units.

Ensure minimum life line consumption of 1 unit

per household per day by year 2012.


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REFORMS FROM THE EYES OF LEGISLATION

Introduced in Lok Sabha on 30th August,

2001.Referred to the Standing Committee on

Energy.

Standing Committee submitted its report on

19th December, 2002.

Passed by Lok Sabha on 9th April, 2003.

Passed by Rajya Sabha on 5th May, 2003.

Received the assent of the President on26.5.2003.

Published in the Gazette on 2.6.2003.


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It extends to the whole of India except the State of Jammu

and Kashmir. The Central Government shall, from

time to time, prepare the National Electr ic i ty Pol icyand Tariff Polic y, in consultation with the State

Governments and the Authority for development of

the power system based on optimal utilisation of

resources such as coal, natural gas, nuclearsubstances or materials, hydro and renewable

sources of energy.3(1)

The Authority shall prepare a National Electr ici ty Planin

accordance with the National Electricity Policy and notify

such plan once in five years.3(4)


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The Central Government shall, after consultation with the

State Governments, prepare and notify a national policy,

permitting stand alone systems(including those based onrenewable sources of energy and non-conventional sources

of energy ) for rural areas.(4)

The Central Government shall also formulate a national

policy, in consultation with the State Governments and the

State Commissions, for rur al electr i f icationand for bulk

purchase of power and management of local distribution in

rural areas through Panchayat Institutions, users

associations, co-operative societies, non-Governmentalorganisations or franchisees.(5)


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Any generating company may establish, operate and

maintain a generating station without obta in ing a l icence

under th is A ct i f i t compl ies w i th the technica l standards

relat ing to con nect ivi ty w ith the gr id referred to in clause (b)

of Section 73.(7)

Notwithstanding anything contained in section 7, anygenerating company intending to set-up a hydro-generat ing

stat ionshall prepare and submit to the Authority for its

concurrence, a scheme estimated to involve a capital

expenditure exceeding such sum, as may be fixed by the

Central Government, from time to time, by notification.8(1)


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CAPTIVE GENERATION

Notwithstanding anything contained in this

Act, a person may construct, maintain or

operate a captive generating plant and

dedicated transmission lines:

Provided that the supply of electricity from

the captive generating plant through the

grid shall be regulated in the same manner

as the generating station of a generatingcompany.9(1)


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DUTIES OF DISTRIBUTION LICENSEE AND OPEN ACCESS

The State Commission shall in t roduce open access in suc h

phases and su bject to such cond i t ions, (including the crosssubsidies, and other operational constraints) as may be specifiedwithin one year of the appointed date by it and in specifying theextent of open access in successive phases and in determiningthe charges for wheeling, it shall have due regard to all relevantfactors including such cross subsidies, and other operational

constraints:

Provided that such open access may be allowed before the crosssubsidies are eliminated on payment of a surcharge in addition tothe charges for wheeling as may be determined by the State

Commission :



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LICENSING

No person shall

(a) transmit electricity; or(b) distribute electricity; or

(c) undertake trading in electricity,

unless he is authorized to do so by a license issued under

section 14, or is exempt under section 13.9.(12)

The Appropriate Commission may, on the recommendations, of

the Appropriate Government, in accordance with the national

policy formulated under section 5 and in public interest, direct, by

notification that subject to such conditions and restrictions, if any,

and for such period or periods, as may be specified in thenotification, the provisions of section 12 shall not apply to any

local authority, Panchayat Institution, users association, co-

operat ive societ ies, non -gov ernmental organizat ions , or

franchisees.(13)


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FUNCTIONS AND DUTIES OF AUTHORITY

(c) specify the safety requirements for construction, operationand maintenance of electrical plants and electric lines;

(d) specify the Grid Standards for operation and maintenance

of transmission lines;

(e) specify the conditions for installation of meters fortransmission and supply of electricity;

(f) promote and assist in the timely completion of schemes

and projects for improving and augmenting the electricity

system;

(g) promote measures for advancing the skill of personsengaged in the electricity industry;


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FUNCTIONS AND DUTIES OF AUTHORITY

(h) advise the Central Government on any matter on which itsadvice is sought or make recommendation to that Government

on any matter if, in the opinion of the Authority, the

recommendation would help in improving the generation,

transmission, trading, distribution and utilisation of electricity;(i) collect and record the data concerning the generation,

transmission, trading, distribution and utilisation of electricity

and carry out studies relating to cost, efficiency,

competitiveness and such like matters;

(j) make public from time to time information secured underthis Act, and provide for the publication of reports and

investigations.


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PRIVATE DISTRIBUTION COMPANIES IN INDIA

BEST

REL

DISCHERGARH

TATA POWER

TATA TEA

BSES RPL

BSES YPL

NDPLCESC

TORRENT AEC

TORRENT SEC

NPCL


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INITIATIVES BY GOVERNMENTNDC Committee under the chairmanship of Shri Sharad

Pawar, the then Chief Minister of Maharashtra(1993)

The industry should be reoriented to be accountable to

the consumers.

Foremost reform needed in the state power sector is to

restore the autonomy of the state power utilities.

The State Government must distance itself from the

management of the State Electricity Board (SEB) to enablethe latter to have necessary technical, managerial and

financial autonomy.


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INITIATIVES BY GOVERNMENTNDC Committee

SEBs should function as corporate bodies which will enhance the

commercial viability of their operation.

Minimum tariff should gradually be increased so that it is not less than

50% of the average cost of the generation and distribution of electricity

during a year.

Constitute independent professional Tariff Boards. In the long run,these should be converted into statutory bodies.

Private sector participation in the power sector should be to attract

domestic and foreign investment in a competitive environment so that

the consumer of the retail may get the power so generated at the least

cost.

Stringent penalties should be imposed in case of unauthorized use of

electricity or theft.

Metering facilities should be installed not only for measuring the

electricity sold to the consumers but also for monitoring the energy

consumption at different voltages.


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ONE TIME SETTLEMENT OF OUTSTANDING DUES OF SEBS

Montek Singh Alhuwalia Expert

group,Member(P):Report

For the state participating in the scheme, 60% of interest /

surcharge on the delayed payments as on 30th September

2001 would be waived off.

The rest of the dues amounting to the full principle amount

as well as the remaining 40% of the interest/surcharge

would be securitised through bonds issued by the respective

State Governments.

The bonds would be issued through RBI at a tax free

interest rate of 8.5% per annum.


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ONE TIME SETTLEMENT OF OUTSTANDING DUES OF SEBS

For ensuring timely payment of current dues in future,

defaults in current payments for power / fuel would attract agraded reduction in the supply of power from central power

stations and in coal supplies. Where such defaults exceed

90 days from the date of billing, the Ministry of Finance shall

recover these dues through adjustment against releasesdue to them from the centre.

CPSUs shall offer incentives to SEBs for compiling with

the schemes.

Outstanding dues as on 30th September 2001 would form

the basis of the one time settlement.


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EXPERT COMMITTEE ON STATE SPECIFIC REFORMS

Sh Deepakh Parikh ,chairman ,IDFC limiteds

REPORT

The Government should ex-ante commit to a level of fundingthat would be made available for APDRP over the future and

agree to transfer it through a define annual allocation.

Access to assistance under APDRP should be made

contingent on a state signing off on the SEB dues settlement

scheme.

There would be two streams of support from the APDRP fund-

one for investment and other for incentive.

Efforts under investment component under APDRP be

directed towards concentrated zones.


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EXPERT COMMITTEE ON SATAE SPECIFIC

REFORMS


REPORTAPDRP funds should be made available to the utilities and

should also be accessible for private distribution utilities

subject to adequate safeguards to ensure that these utilities

pass on the benefits arising out of such investment to the

end consumers.

SERCs may consider taking such steps as necessary to

make the adoption of multi-year approaches as soon as

possible.Privatisation of concentrated zones and the introduction of

private participations in the other areas, so as to enable

harnessing of the private sectors focus of operational and

investment efficiency and viability of enterprise.


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EXPERT COMMITTEE ON SATAE SPECIFIC

REFORMS


REPORTState Government should take over all liabilities of SEBs

and write off its own loans to the SEB to enhance the

credibility of the restructuring process.


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MEMORANDUM OF UNDERSTANDINGGovernment of India signed MOUs with states for

undertaking reforms and restructuring in a time boundmanner and linking the support of Government of India for

achievement of pre-determined milestones

Reform programme by State Government

Reorganisation of State Electricity Boards

100% electrification of villages and hamlets

Energy audit at all levels

Setting up of SERCs

Rationalisation of tariffs


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MEMORANDUM OF UNDERSTANDINGSupport from Government of India

Supply of additional power wherever feasible

Strengthening & improvement of transmission

network

Assistance for distribution system

Funding for 100% electrification of village and

hamlets

Concessional financing by PFC for financialrestructuring plans, etc.


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MEMORANDUM OF AGREEMENTMemorandum of Agreement (MOA) by the SEBs/Utilities with MOP

is a prerequisite for release of APDRP funds.

SEBs/Utilities have to commit to certain benchmark parameters to

be achieved by them in next three years at the state level and at the

circle level.

MOA also mentions about various steps to be taken by the

SEB/Utility on administrative, technical and commercial fronts forimproving their overall performance.

States have been asked to formulate suitable policy for handing

over parts of distribution system on management contract or on

lease to local bodies, franchises, consumer corporative, local

institutions, and users association etc to promote bulk consumers

All the states have signed MOAs

S. No. Parameters


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1 Input energy Vs metered energy sale to consumers (energy billed

on flat rate/assessed basis is not to be included) for the entire state

2 T&D losses in MU (flat rate sales and unmetered sales is not to beincluded) for entire state

3 Gap between ARR and ACS per unit of energy (ARR-ACS). ARR:

Ratio of Gross Revenue Sales in crores of Rs and Net Energy Input

in MU for entire state. ACS: Ratio of cost of supply (including

generation cost, purchase and overhead cost) in crores of Rs. And

Net Energy input in MU for entire state

4 Productivity- Ratio of Metered energy sale to consumers and total

Manpower strength in a SEB/DISCOM (executive plus supervisors

plus support staff)

5 Improvement in PLF, heat rate and auxiliary power consumption

(Weighted Average for Generation plants owned by SEB)

6 Outstanding dues to CPSUs and other agencies (Outstanding dues

are cumulative Amount in Rupees crores as on 31st Dec.01)

7 Declared financial losses (to be provided in terms of Rs. and also in

terms of percentage sales on financial year basis)


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S.

No.

Parameters

1 Input energy to circle Vs metered energy sale to consumers (energy billed on

flat rate/assessed basis is not to be included)

2 T&D losses in MU (flat rate sales and unmetered sales is not to be included)

3 Gap between ARR and ACS per unit of energy (ARR-ACS). ARR: Ratio of

Gross Revenue Sales in crores of Rs and Net Energy Input in MU for entire

state. ACS: Ratio of cost of supply (including generation cost, purchase and

overhead cost) in crores of Rs. And Net Energy input in MU for entire circle

4 Productivity- Ratio of Metered energy sale to consumers and total Manpower

strength in a SEB/DISCOM (executive plus supervisors plus support staff)

5 Billing cycle time (Period)

6 Feeder outages (Numbers)

7 Failure rate of DTs (Percentage)

8 Consumer complaints (Numbers)


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9 Complaint disposal time (Period)

10 HT/LT Ratio

11 Average Load factor on Distribution Transformers

12 Average Power Factor


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Model no 1

SEB

CORPORATISED


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Model no 2

SEB

CORPORATISED

PUBLIC LTD CO.

with govt holding less than 50%


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Model no 3

SEB

GENCO

(Govt held)

TRANSCO

(Govt held)

DISTCO

(Govt held)


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Model no 4

SEB

Generation

&

Transmission Com

(Govt held)

Pvt Distribution Companies

(Govt held)


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Model no 5

SEB

GENCO

(Pvt Sector)

TRANSCO

(Pvt Sector)

DISTCO

(Pvt Sector)


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Model no 6

SEB

Generation

&

Transmission Com

(Pvt Sector)

TRANSCO

(Govt held)


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Model no 7

SEB

ZONAL (PVT SECTOR)

(GEN +TRANSMISSION+DISTRIBUTION)


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Model no 8

CONBINATION OF MODEL

4,5,6 AND 7.


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Feeder Meters

Improve Accountability

Reduce theft

Increase Revenue

Lower Tariff

Consumer Meters

Improve Billing

Increase Revenue

Lower Tariff


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Line Up gradation


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e Up g ada o

Reduce Outages

R

Better quality

Customer satisfaction

Increase Revenue

Lower Tariff

CConversion to HVDS

Improve Voltages

R

Better quality

Customer satisfaction

Increase Revenue

Lower Tariff

C


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Line Up gradation

I

Increase Revenue

Lower Tariff

C


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CONTROLCategory Character ist ics

A publicly owned, controlled by central governmentB publicly owned, controlled by local/state government

C privately owned, domestically controlled

D privately owned, domestically and internationally controlled

E mixed - predominance of public ownership (by which ismeant that, in a sector where there are found both public and

private ownership, the influence of the publicly owned entities is

greater than that of those which are privately owned)

F mixed - predominance of private ownership (as for E but with

privately owned entities being more influential).NO OF ALTERNATIVES=5


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PRIVATISATIONCategory Character ist ics

A no privatisation taken placeB privatisation process underway

C privatisation substantially complete

D always in private sectorNO OF ALTERNATIVES=4

STRUCTURECategory Character ist ics

A vertically integrated industryB unbundled industry

C mixed structureNO OF ALTERNATIVES=3


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TOTAL PERMUTATIONS=5X4X3X5

=300


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WESTERN EUROPEMost of countries in Western Europe are also members of

the European UnionThe 1996 European Union Directive on the Liberalisation of

the Electricity Market has had a great effect on the

development of electricity sector liberalisation.

Before the agreement on the directive the only countries tohave embarked on programmes of liberalisation were the

United Kingdom and three Scandinavian countries: Finland,

Norway and Sweden.

Largely as a result of the Directive, all countries in Western

Europe can now be considered to have liberalisationprogrammes underway

COUNTRY KEY


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CONTROL PRIVATISATIO

N

STRUCTURE PRICE RE

Austria E B C A

Belgium F A A A

Cyprus A A A A

Denmark E A/B B D

Finland E B B C

France A A A AGermany E/F B C C

Greece A A A A

Iceland E A B E

Ireland A A/B A E

Italy E B A B

Luxembourg E D C A

Netherlands B B B A

Norway E A/B C C

Portugal A B A A

COUNTRY KEY


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CONTROL PRIVATISATIO

N

STRUCTURE PRICE RE

Spain D C B D

Sweden E B B E

Switzerland E B A A

United Kingdom D C C C

CENTRAL AND EASTERN EUROPE


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CENTRAL AND EASTERN EUROPE

Central and Eastern Europe has seen considerable moves towards

electricity liberalisation since the ending of communist rule in countriesof the former Soviet bloc.

This has mirrored general moves towards the dismantling of previous

centralist regimes and the establishment of market principles.

The pace of change in many of these countries, however, remains

slow and dependent on overall economic strength and the success of

the introduction of very new frameworks to economies inexperienced in

the workings of market principles.

Most countries have seen, however, the introduction of international

independent power producers.

The countries generally demonstrate an overall commitment to

processes of economic restructuring and liberalisation but little as yet byway of specific progress towards reform of the electricity sector.

The commentary on individual countries focuses only on those

countries where particular reform of the electricity sector has been

entered into.

COUNTRY KEY


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CONTROL PRIVATISATION STRUCTURE PRICE REG

ALBANIA E B B A

ARMENIA A B B B

AMERBAIJAN A A A A

BELARUS A A A A

BOSNIA-

HERZEGOVINA

A A A A

BULGARIA A A A A

CROATIA A A A A

CZECH REPUBLIC E B C A

ESTONIA E B A A

GEORGIA E B C BHUNGARY E C B B

KAZAKHSTAN E B C A

KYRGYZSTAN A B A D

LATVIA A B A A

B


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COUNTRY KEY

CONTROL PRIVATISATION STRUCTURE PRICE RE

LITHUANIA A B B B

MACEDONIA A A A A

MOLDOVA A A A A

POLAND A B B A

ROMANIA A A A B

RUSSIA A B A A

SLOVAKIA A A C A

SLOVENIA A B B A

TAJIKSTAN A A A A

TURKEY E B C ATURKMENISTAN A A A A

UKRAINE E B B B

UZBEKISTAN A A A A


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AFRICA AND THE MIDDLE EASTLiberalisation of the electricity sector in Africa is developing slowly.

Virtually all countries are characterised by state ownership of theutilities, together with little liberalisation of the electricity sector.

Many countries have committed themselves to a programme of

liberalisation and privatisation but, with only very rare exceptions such as

the Cameroons, Egypt, the Cte dIvoire and South Africa, these planshave not yet been developed into concrete proposals for the electricity

sector.

Private involvement in generation is growing, as governments seek

capital to improve electricity facilities. In particular, independent private

power plants have been developed in some countries and legal changes

which would enable private participation in generation have been

proposed in others.

Particular developments of note in individual countries are presented

after the table.

Algeria A A A A


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Angola A A A A

Bahrain A A A A

Benin A A C A

Bissau A A A A

Botswana A A A A

Burkina Faso A A A A

Burkina Faso A A A A

Burundi A A A A

Cameroon A B A A

Central African Republic A A A A

Chad A A A A

C (D ti R bli ) A A A A


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Congo (Democratic Republic) A A A A

Cte dIvoire E B C A

Djibouti A A A A

Egypt (Arab Rep) A B B A

Equatorial Guinea A A A A

Eritrea A A A A

Ethiopia A B A A

Gabon A A A A

Gambia/Ghana A C B B

Guinea A A A A


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Iran (Islamic Rep) A A A A

Iraq A A A A

Israel A A A A

Jordan A B A A

Kenya E A B A/B

Kuwait A A A A

Lebanon A A A A

Lesotho A A A A

Liberia A A A A

Libya/GSPLAJ A A A A


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Libya/GSPLAJ A A A A

Madagascar A A A A

Malawi A A A A

Mali A A A A

Mauritania A A A A

Mauritius A A A A

Morocco A A A A

Mozambique A A A A

Namibia A A A A

Niger A A B A

Nigeria A A A A


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Oman E B A A

Qatar A B A A

Rwanda A A A A

Saudi Arabia A B A A

Senegal A A A A

Sierra Leone A A A A

Somalia A A A A

South Africa A A C A

South Yemen A A A A

Sudan A A A A

Swaziland A A A A


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Syria (Arab Rep) A A A A

Tanzania A A A A

The Gambia A A A A

Togo A B A A

Tunisia A A A A

Uganda A A A A

United Arab Emirates E B A A

Yemen A B A A

Zaire A A A A

Zambia E B A A

Zimbabwe E B C A

ASIA/AUSTRALIA


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Country Key

Control Privatisation Structure Price Regulation

Afghanistan A A A A

Australia E B C A

Bangladesh A A A A

Bhutan A A A A

Burma A A A A

Cambodia A A A A

China B A A A

Hong Kong D D A A

India B B B A

ASIA/AUSTRALIA
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SOUTH AMERICA


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Country Key

Control Privatisation Structure Price Regulation

Argentina D C B C

Bolivia F B C E

Brazil B B C A

Chile C C C C

Colombia E B C E

Ecuador A B A A

Guyana A A A A

SOUTH AMERICA

SOUTH AMERICA
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Paraguay A A A A

Peru F B C C

Surinam A A A A

Uruguay A A A A

Venezuela E B A A

SOUTH AMERICA


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APDRPD APDRP was originally started as Accelerated Power

Development Programme (APDP) in 2000-01, with

emphasis on

upgradation of sub-transmission and distribution

network and

also on renovation and modernization/ life extension/

uprating of old power plants (thermal and hydel)

Accelerated Power Development Programme


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(APDP)During 2000-01 a scheme called Accelerated Power Development

Programme (APDP) to provide systematic finance to enableSEBs/Utilities to take up distribution sector reform.

Budgetary allocation of Rs. 1000 Crore and Rs. 1500 Crore

respectively to the State Governments as Additional Central Assistance

in first two years respectively.

n 2000-01 projects costing Rs. 1456.78 Crore were sanctioned and the

Government released its full contribution of Rs. 786.29 Crore in one

installment. The utilities have utilized Rs. 1306.57 Crore.

In 2001-02 many of the States had not signed MOU and MOAAgreement (MOA) was under preparation, no funds were released.

Assistance under the Programme was subject to signing of

Memorandum of Understanding (MOU) by the States.


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APDRP

On the recommendations of Deepak Parekh Committeeon State specific reforms APDP was rechristened as

APDRP during 2002-03 with focus on concentrated

zones i.e. industrial and urban areas. Incentive

component was introduced in 2002-03 to encourage theutilities to reduce their cash losses.


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APDRP

The funding modalities have also been restructured

during 2005-06. Earlier, the assistance under

investment component of the programme in the form

of 25% grant and 25% loan (90% grant and 10%

loan for special category states) was being given.

The loan component has been dispensed with fromthe current financial year


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APDRPFEATURES

Reduction in Aggregate Technical and Commercial (AT&C)

losses

to bring about commercial viability

to reduce outages and interruptions

and to Increase consumer satisfaction.

The programme envisages an investment component that

covers strengthening and upgradation of sub-transmission and

distribution system with twenty five percent grant and anincentive component as grant to states/ utilities that reduce

cash losses with 2000-01 as the base year


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APDRPEXPECTED BENEFITSQuality of supply and reliable, interruption- free powerwill encourage usage of energy efficient equipments /

appliances, which will further lead to improvement in

availability of energy.

Reduction in cash losses on a permanent basis to the

tune of Rs.15,000 Crore.

Distribution reform as envisaged above will help States

to avoid heavy subsidies, which are given to SEBs /

State Utilities by State Governments. They would be

able to invest this amount for providing basic services

like Health, Education, and Drinking Water etc.


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APDRPEXPECTED BENEFITSQuality of supply and reliable, interruption- free powerwill encourage usage of energy efficient equipments /

appliances, which will further lead to improvement in

availability of energy.

Reduction in cash losses on a permanent basis to the

tune of Rs.15,000 Crore.

Distribution reform as envisaged above will help States

to avoid heavy subsidies, which are given to SEBs /

State Utilities by State Governments. They would be

able to invest this amount for providing basic services

like Health, Education, and Drinking Water etc.

Year BE RE Actual Expenditure


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2002-03 3500.00 1089.00 Investment 1755.52

Incentive 379.28

Total - 2134.80

2003-04 3500.00 3300.00 Investment 2356.51

Incentive 503.30

Total 2859.81

2004-05 3500.00 1700.00 Investment- 1428.73

Incentive 73.00

Total 1501.73

2005-06 1172.00

(Grant only)

- Investment 331.56

Incentive 515.78

Total 847.34


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Total projects sanctioned: Rs. 19182.33 Crore

Total fund released: Rs. 5872.32 Crore

Total fund utilized: Rs. 8568.44 Crore

S.No. Name of States Year Reduction in cash

l

Incentive Released


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losses

1. Andhra Pradesh 2002-03 530.22 265.11

2. Gujarat

2001-02 472.76 236.38

2002-03 296.16 148.08

3. Haryana 2001-02 210.98 105.49

4. Kerala 2002-03 129.88 64.94

4. Maharashtra 2001-02 275.78 137.89

5. Rajasthan 2001-02 275.42 137.71

6.

West Bengal

2002-03 146.00 73.00

2003-04 605.52 302.76

Total 2942.72 1471.36


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APDRPFocus on following after evaluation of 66 projects

GIS based consumer indexing and distribution transformer basedenergy auditing for increased accountability

Adoption of IT for efficiency improvement

Focused monitoring on key performance parameters.

To cover all district headquarters under the programme on priority

Establishment of consumer care centers/Bijlee Seva Kendras


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Thank You

04.reforms & restructuring

Documents