THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF POWER
( SHRI JYOTIRADITYA M. SCINDIA )
(a) : The enactment of Electricity Act, 2003 along with the policies and
regulations made there under have brought in comprehensive reforms in the
electricity sector with the overall objective of extending benefits to the end
consumers and balanced growth of the sector.
Electricity being a concurrent subject, the provisions of the Act are applicable to
the Central and State Governments as well as to the different statutory bodies and
entities defined under the Act. However, it does not specifically provide for
adoption of power sector reforms approved by the Union Government by the States.
The Electricity Act, 2003 provides for the framework of reforms in power sector.
Different States are at different stages of reforms. In terms of section 172 of
the Electricity Act, 2003, 19 States have re-organized their State Electricity
Boards, except State of Jharkhand and Kerala.
(b) : While no grant/loan is specifically provided for adopting reforms in
the power sector, however, some of the schemes/programs like National
Electricity Fund (NEF), Restructured-Accelerated Power Development and
Reforms Programme (R-APDRP) and Scheme for Financial Restructuring of State
Distribution Companies (Discoms) made by Central Government have indices
which also include reform measures in the power sector.
(c) & (d) : Ministry of Power has got conducted a study by the Indian
Institute of Public Administration (IIPA) on the impact of reorganization of the
State Electricity Boards. The study concluded that `despite some short coming,
the overall impact of restructuring has been positive and in the right direction`.
The report given by IIPA states that the following overall improvements have
been noticed in four States which have reorganized their SEBs (Andhra
Pradesh, Haryana, Karnataka and Orissa)-
I) Trend towards reducing AT&C losses.
II) Increased and more focused investments.
III) Capacity addition and strengthening of the power systems.
IV) Localisation and reduction of inefficiencies.
V) Improved customer care.
VI) Progress in metering, billing and collection etc.
VII) Increased accountability of the Utilities.
VIII) Establishment of Regulatory Mechanism.
IX) Empowerment of consumers.
X) Reporting and reviewing of performance of the Utilities on a regular basis.
(e) & (f) : 19 States have re-organized their State Electricity Boards, except
State of Jharkhand and Kerala. The Central Government has granted extension
to the concerned States Governments from time to time.
