(a) whether the Government propose to provide incentives to the State Governments
for reorganization of SEBs by linking the plan assistance to the Sates;
(b) if so, the details of the plan formulated by the Union Government in this regard;
(c) the reaction of the State Governments thereto; and
(d) the progress made towards reforms in power sector?
THE MINISTER OF STATE IN THE MINISTRY OF POWER( SHRIMATI JAYAWANTI MEHTA )
(a) to (d) : State Electricity Boards (SEBs) are under the administrative control of the
State Governments. The decision to restructure the SEBs, therefore, rests with the State
Governments. The Electricity Bill, 2001 under consideration of the Parliament also gives
flexibility to States in terms of reform model. While it enables States to unbundle SEBs,
it also provides flexibility to States to continue with their SEBs, if they so desire.
The Government of India has been encouraging States to undertake reforms so as
to improve the health of the power sector. The Government of India has been signing
Memoranda of Understanding (MoU) with States reflecting the joint commitment of the
Centre and the States to undertake reforms in a time bound manner. These require the
States to set up SERCs, undertake energy audit through full metering, reduce
transmission and distribution losses and attain commercial viability. In reciprocation to
the efforts of the States to achieve agreed milestones, the Central Government has
committed assistance including allocation of additional power from unallocated share
from Central Generating Stations, funds under specific programmes/schemes etc. The
MoUs are now being fleshed out into MoAs with clearer and more specific milestones as
the reform programme in the State is acquiring concrete shape. 25 States have been
covered by this exercise till now.
The Accelerated Power Development Programme (APDP) was introduced in
February, 2000, with the sole objective of initiating a financial turnaround in the
performance of the State owned power sector. The Programme has been rechristened as
Accelerated Power Development and Reforms Programme (APDRP). The APDRP
scheme proposes to incentivise actual cash loss reduction by SEBs/utilities.
Andhra Pradesh, Gujarat, Maharashtra and Haryana have submitted their claims
for incentive for the financial year 2001-02 for a total of Rs. 1821 crores.
States of Orissa, Haryana, Andhra Pradesh, Karnataka, Uttar Pradesh, Rajasthan,
Madhya Pradesh and Delhi have passed their own Reform Laws and unbundled their
SEBs. Twenty-two States have either constituted or notified constitution of State
Electricity Regulatory Commissions (SERCs). 13 SERCs have passed tariff orders which
reflect the trend towards tariff rationalization. 7 States (Andhra Pradesh, Karnataka,
Uttar Pradesh, Madhya Pradesh, West Bengal, Kerala and Maharashtra) have passed anti-
theft laws. Gujarat have drafted its anti-theft law.