Question : PROFIT AND LOSSES OF SEBs



(a) whether T&D losses of some State Electricity Boards are still high;

(b) if so, the reasons therefor;

(c) the steps taken by Government to reduce T&D losses;

(d) the accumulated profit & loss of each State Electricity Board during the last three years;

(e) the nature of assistance provided by the Union Government to SEBs, State-wise; and

(f) the steps taken/proposed to be taken by the Government to bring down the losses of SEBs?

Answer given by the minister

THE MINISTER OF POWER ( SHRI P.M. SAYEED )

(a) to (f) : A Statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (f) OF STARRED QUESTION NO. 495 TO BE ANSWERED IN THE LOK SABHA ON 29.04.2005 REGARDING PROFIT AND LOSSES OF SEBs.

(a) & (b) : Yes, Sir. The transmission and distribution (T&D) losses of some of the State Electricity Boards (SEBs) are high on account of old and weak systems, overloading of existing lines & substation equipments, lack of up gradation of old lines and equipments, low High Tension to Low Tension Ratio, poor repair and maintenance of equipments, insufficient capacitors, low metering, billing and collection efficiency, pilferage, tampering of meters and high theft.

(c) : The steps taken by the Government to reduce the transmission and distribution losses include:


(i) Metering of 11kV feeders and consumer metering;

(ii) Energy accounting and auditing;

(iii) Strengthened provisions relating to theft of power in Electricity Act, 2003;

(iv) Upgradation and strengthening of sub-transmission and distribution system under APDRP;

(v) Incentivising for reduction of cash losses by State power utilities under APDRP;

(vi) Introduction of High Voltage Distribution System (HVDS);

(vii) Introduction of IT applications.




(d) : As reported by the Power Finance Corporation, Statewise details of Commercial Profit/Losses of Power Utilities during the years 2001-02, 2002-03 and 2003-04 are at Annexure-I.

(e) : Assistance is provided for


(i) Upgradation and strengthening of sub-transmission and distribution system under APDRP –statement is at Annexure-II.


(ii) Incentivising for reduction of cash losses by State power utilities under APDRP – statement is at Annexure-III

(f) : The Government of India has initiated various steps to revive the poor financial health of SEBs/Power Utilities. The Ministry of Power has signed Memorandum of Understanding (MoU)/Memorandum of Agreement (MoA) with States on power sector reform envisaging support of Central Government subject to States progressing satisfactorily on agreed reform agenda. The Union Government, in order to help the State Utilities is providing funds to States under Accelerated Power Development and Reforms Programme (APDRP) for investment in identified distribution areas for, inter-alia, reducing technical losses and improving the quality of supply and also for incentivising, through grants, reduction of cash losses. Past debts of SEBs due to Central Public Sector Undertakings have been securitised under tripartite agreements.

The Electricity Act, 2003 creates a liberal framework for development of electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalization of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, constitution of Central Electricity Authority, Regulatory Commissions and establishment of Appellate Tribunal. The Act reduces entry barriers in different segments of power supply industry and promotes competition and in turn efficiency improvements. It also provides for stringent measures for dealing with theft of electricity and for rationalization of tariffs.

ANNEXURE-I

ANNEXURE REFERRED TO IN PART (d) OF STATEMENT LAID IN REPLY TO STARRED QUESTION NO. 495 TO BE ANSWERED IN THE LOK SABHA ON 29.4.2005 REGARDING PROFIT AND LOSSES OF SEBs.
State-wise details of Commercial Profit/Losses of Power Utilities
Total (Rs. crore)
Sl. No. SEBs/Utilities 2001-02 2002-03 2003-04
1. Andhra Pradesh -2948 -1209 -1399

2. Assam -696 -775 -655

3. Arunachal Pradesh -93 -117 -82

4. Bihar -893 -1095 -980

5. Chhattisgarh 203 792 587 6. Delhi N.A. -658 -1750

7 Goa -7 131 153

8. Gujarat -3102 -2250 -3021

9. Haryana -947 -804 -769 10. Himachal Pradesh -107 -53 -46 11. Jharkhand -255 -397 -522 12. Jammu & Kashmir 34 -1243 -1229 13. Karnataka -1846 -1566 -1236 14. Kerala -1253 -935 -915 15. Madhya Pradesh -1347 -822 -1230 16. Maharashtra -540 -255 -549 17. Manipur -129 -128 -125 18. Meghalaya -38 -19 64 19. Mizoram -30 -34 -49 20. Nagaland -50 -55 -42 21. Orissa 221 -433 582 22. Punjab -1868 -1386 -663 23. Pondicherry -44 34 38 24. Rajasthan -1324 -1738 -1777 25. Sikkim -10 -30 -15 26. Tamil Nadu -5175 -2099 -1417 27. Tripura -100 -94 -5 28. Uttar Pradesh -2518 -2374 -2848 29. Uttaranchal -27 32 -35 30. West Bengal -1705 -913 -296
Total -26,596 -20,494 -20,232




ANNEXURE-II

ANNEXURE REFERRED TO IN PART (e) OF STATEMENT LAID IN REPLY TO STARRED QUESTION NO. 495 TO BE ANSWERED IN THE LOK SABHA ON 29.04.2005 REGARDING PROFIT AND LOSSES OF SEBs.

Funds released to the States under investment component of APDRP

(Rs. in crores)
S. Name of State Funds Released No 2002-03 2003-04 2004-05
1 Andhra Pradesh 163.82 402.94 0.00 2 Arunachal Pradesh 0.00 36.68 0.00 3 Assam 96.97 0.00 61.88 4 Bihar 66.11 20.88 226.19 5 Chhattisgarh 10.00 43.07 106.14 6 Delhi 105.51 0.00 0.00 7 Goa 22.04 8.54 82.82 8 Gujarat 105.41 183.45 111.40 9 Haryana 56.33 112.66 0.00 10 Himachal Pradesh 43.05 120.87 0.00 11 Jammu & Kashmir 20.00 180.50 114.47 12 Jharkhand 12.00 43.60 98.27 13 Karnataka 145.15 290.30 0.00 14 Kerala 30.43 74.23 125.89 15 Madhya Pradesh 74.87 10.00 45.00 16 Maharashtra 138.48 107.98 21.77 17 Manipur 2.67 0.00 0.00 18 Meghalaya 6.57 14.56 37.24 19 Mizoram 3.78 25.18 0.00 20 Nagaland 13.14 10.47 19.22 21 Orissa 54.35 0.00 19.67 22 Punjab 53.98 124.76 0.00 23 Rajasthan 125.64 219.70 40.49 24 Sikkim 17.21 60.17 77.35 25 Tamil Nadu 111.57 232.59 97.66 26 Tripura 2.67 6.10 28.87 27 Uttar Pradesh 80.12 0.00 54.40 28 Uttaranchal 174.63 6.13 60.00 29 West Bengal 19.02 21.15 0.00
Total 1755.52 2356.51 1428.73



ANNEXURE-III

ANNEXURE REFERRED TO IN PART (e) OF STATEMENT LAID IN REPLY TO STARRED QUESTION NO. 495 TO BE ANSWERED IN THE LOK SABHA ON 29.04.2005 REGARDING PROFIT AND LOSSES OF SEBs

Funds released to the States under incentive component of APDRP

(Rs. In Crores)
SL. NO. STATE INCENTIVE RELEASED
1. Gujarat 236.38

2. Maharashtra 137.89

3. Haryana 105.49

4. Rajasthan 137.71

5. Andhra Pradesh 265.11 6. West Bengal 73.00
Total 955.58