Power reforms on track

The Centre's attempts to introduce performance benchmarks in the power sector are yielding results.

During 2002-03, eight states have shown encouraging progress in ensuring the commercial viability of their electricity boards.

Reforms report card for 2002-03

States reporting increase in revenue collection: West Bengal, Uttar Pradesh, Assam States showing cash loss reduction: Maharashtra, Gujarat, Haryana States showing technical and commercial losses reduction: Andhra Pradesh, Haryana, Karnataka, Rajasthan

The Centre is now projecting these states as models of success and giving then monetary incentives so that others may follow suit.

These states include Uttar Pradesh and West Bengal, which have shown steady progress in improving revenue collection.

Andhra Pradesh, Haryana, Karnataka and Rajasthan have managed encouraging results in reduction of commercial losses, while Maharashtra, Haryana and Gujarat have reduced cash losses and consequently become eligible for a cash incentive from the government.

Delhi's newly privatised distribution companies, along with private companies operating in Surat, Ahmedabad and Mumbai are setting the trend with regard to operational efficiency and ensuring customer satisfaction under a privatised set-up.

According to available figures, West Bengal has reported an over 27 per cent jump in revenue collection at Rs 3,100 crore (Rs 31 billion) in 2002-03 from Rs 2,438 crore (Rs 24.38 billion) in the previous year.

Uttar Pradesh has reported a Rs 236 crore (Rs 2.36 billion) increase in revenue collection during April-October 2002 at Rs 3,205 crore (Rs 32.05 billion), compared to the same period in the previous year.

Assam has reduced losses by nearly Rs 100 crore (Rs 1 billion) between April and October 2002. Maharashtra, Gujarat and Haryana have reduced losses by Rs 579.74 crore (Rs 5.80 billion), Rs 1,072.29 crore (Rs 10.72 billion) and Rs 10.02 crore (Rs 100.2 million), respectively.

This has made Maharashtra eligible for a cash incentive from the government amounting to Rs 289.87 crore (Rs 2.90 billion). Gujarat will get Rs 536.145 crore (Rs 5.36 billion) and Haryana will get Rs 5.01 crore (Rs 50.1 million).

A number of states have also reported reduction in aggregate technical and commercial losses. Andhra Pradesh has reported a reduction in losses from 33.9 per cent in 2000-01 to 29.6 per cent in 2001-02.

The Dakshin Haryana Bijlee Vitran Nigam Ltd has reported a 4.44 per cent reduction in AT&C losses in 2002-03 compared to the previous year.

Karnataka has reported 34 per cent AT&C losses in the last fiscal against 38 per cent in 1999-00 and 35.5 per cent in 2000-01.

Rajasthan has also reported a reduction in losses to 38.26 per cent in 2000-01 as compared to 42.01 per cent in 1999-00.

Apart from the states, efficiency improvement measures initiated in several circles are also now being touted as successes, with the revenue realisation per unit of supplied energy showing improvement.

For instance, in the Jamnagar circle of Gujarat, revenue realised per MU of input energy has increased by 32 per cent while in the Gorakhpur circle of Uttar Pradesh it has gone up by 16 per cent and in Bareili by 11 per cent.

The revenue realisation in the Ratanagiri circle of Maharashtra increased by 3 per cent while in Jodhpur it went up by 15 per cent. In Muzaffarpur it went up by 2 per cent and in Goa by 14 per cent.