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7/30/2019 Gujarat Distribution Reforms Draft Report
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[Type text]
Power distribution reforms in Gujarat
October 2009
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Power distribution reforms in Gujarat
Introduction
The Gujarat Electricity Board (GEB) was
established along with the formation of
Gujarat State in the year 1960 under
Section 5 of the Electricity (Supply) Act1948. It commenced its operations with
generation capacity of 315 MW and a
consumer base of 1.40 million consumers.
During 1970s and 80s, the major thrust was
on the supply of electricity in the rural
areas. It was largely due to GEB’s
unwavering focus on rural electrification
that Gujarat became the first state to
achieve the landmark of ‘100%
Electrification of Villages’. As per the 1991
Census, 17,940 out of 18,028 villages were
electrified – which was notified as close to
100%1.
The impetus for reforms
Over time, the emphasis of GEB on
electrification particularly in the rural areas,
new connections and maintenance
activities resulted in divergence from
concentrating on profitability. Recovery of
revenue was then considered as a
secondary function. As a result, GEB faced
minimum growth of revenue, rising arrears
and heavy financial losses. It was also a
drain on public resources due to the state’s
policy of supplying electricity to agricultural
consumers at extremely subsidized levels.
The tariff for about 0.5 million agricultural
consumers, prior to October 2000, was Rs.
350 per horsepower of load connected per
year, which led to a revenue realization of
only Rs. 0.15 per unit during 2000-01. Each
incremental unit of agricultural
consumption required a subsidy of at least
Rs. 3.00 per unit. The provision of heavilysubsidized electricity to agriculture
consumers boosted its share of
consumption from 16.7 percent of all
electricity sold in the state in 1970-71 to 43
percent in 1999-00. The loss incurred by
GEB on this account was estimated at Rs. 14
billion during 1999-002. Though GEB started
certain initiatives in 2000 but the conditions
did not improve much by the year 2004-05
(as shown in diagram below)3
. As a result,GEB faced recurring financial deficits and
Chart 1
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Power distribution reforms in Gujarat
was unable to raise resources for
investments.
The inefficiencies in the sector manifested
themselves in the form of chronic shortages
and unreliable service. During FY 1998-99,
load shedding ranging between 50 MW and
1,450 MW was experienced on 362 days of
the year4.
The Government of Gujarat (GoG) initiated
an ambitious policy of inviting private
sector participation (PSP) in the power
sector. But the desired PSP did not
materialize because the revenues
generated by the sector were insufficient to
service the large inflow of capital that wasrequired5. Due to the drain on its resources
caused by supporting an inefficient power
sector, the GoG was not able to increase
spending on other important areas of
infrastructure as well as for social services.
In view of the above, GoG decided to
reform the power sector in the state with a
two-fold objective:
I. Addressing the concerns of the
investors
II. Creating a business environment
conducive to improving the sector’s
operational efficiency, financial
viability, and service to consumers
GoG proposed to achieve its above
mentioned objectives through a number of
reforms. Some of the important measures
which GoG decided to take in order to
achieve the targets were:I. Greater competition at all levels of the
sector wherever practicable
II. Corporatization and commercialization
of existing sector entities
III. Private sector participation in the
generation and distribution segments
IV. Tariffs enabling cost recovery as well as
reasonable profits
V. An independent regulator
VI. Transparent, reasonable, direct, and
quantified subsidies to vulnerable
sections of consumers.
Implementation of Reforms
The promulgation of the Gujarat Electricity
Industry (Reorganization and Regulation)
Act in 2003 for reorganization of the
electricity industry in Gujarat and for
establishing an Electricity Regulatory
Commission in the state for regulation of
the electricity sector paved the way for theorganizational restructuring of GEB. The
vertically integrated GEB was unbundled
into seven companies one each for
generation and transmission, four
distribution companies (Discoms) and a
holding company known as Gujarat Urja
Vikas Nigam Limited (GUVNL). The
generation, transmission and distribution
companies have been structured as
subsidiaries of GUVNL. GUVNL acted as theplanning and coordinating agency in the
sector when reforms were undertaken. It is
now the single bulk buyer in the state as
well as the bulk supplier to distribution
companies. It also carries out the function
of power trading in the state.
All companies became fully operational
from April 2005 and began conducting their
activities independently. Distribution in the
cities of Ahmedabad and Surat has
historically been with a private sector entity
viz. Torrent Power through its fully owned
subsidiaries Ahmedabad Electricity
Company and Surat Electricity Company.
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Power distribution reforms in Gujarat
A noteworthy feature of reforms in Gujarat
was inclusion of representatives of the
unions and associations of the staff in the
restructuring process from the initial stage,
i.e., from the time decision was taken on
reforming the sector. It convinced the staff
that the GoG and GEB were not pursuing
any hidden agenda. It thus cultivated a high
level of trust and confidence amongst the
staff about aims and objectives of reforms
and the process proposed to be followed to
achieve them. This ensured full co-
operation of the staff of GEB in the reform
process. No case of strikes/protests from
employees of the erstwhile GEB was
observed in Gujarat.
Transition support by the state
government
As is typically the case with structural
reforms of power utilities, GoG prepared a
Financial Restructuring Plan (FRP) to enable
the newly formed distribution companies to
start with a clean balance sheet. Under this
FRP, the losses of the erstwhile GEB were
inherited by GUVNL. GoG took over the
debt payment liability of GEB. It settled
outstanding dues of Rs. 1627.71 Crores
payable to Central Public Sector Units
(CPSUs) up to September 2001 and in lieu
issued bonds to these CPSUs. This payment
to CPSUs, since then has been regularly
made through Letter of Credit without
having any further problems resulting in
zero outstanding dues payable to any of
CPSUs.
Further, GoG converted its loan to GEB
aggregating to Rs. 623 Crore into Equityshares in GUVNL. It also allowed a
moratorium period of six years (from FY
2005-06 to FY 2010-11) on interest payment
liabilities on the remaining outstanding loan
of Rs. 842 Crore1. The objective of this
moratorium period was to enable early
recovery of financial health of GUVNL.
Figure 1
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Power distribution reforms in Gujarat
Besides this, GoG sanctioned a capital grant
of Rs. 250 Crore per annum from FY 2005-
06 to FY 2010-11 with the objective of
strengthening the power sector. Such
grants can be utilized for capital
expenditure purposes, rural electrification
projects, maintenance of quality human
resources and expansion of generation
capacity1.
Early reform initiatives in Gujarat
Several states had undertaken the process
of structural reforms to varying degrees
before Gujarat embarked on this path.
These states include Orissa, Haryana,
Andhra Pradesh, Delhi, Karnataka and UttarPradesh. On the other hand states like
Madhya Pradesh and Maharashtra were
undergoing this process around the same
time as Gujarat. However, unlike other
states that waited to complete structural
reforms before taking up comprehensive
measures to address the problems facing
them, Gujarat had started the process of
reforms in early 2000 during the GEB days.
GEB undertook several initiatives toimprove revenue as well as efficiency and
control expenditure. A brief overview of the
measures undertaken by GEB is provided
below.
Revenue improvement measures
GEB made significant efforts to improve its
revenue through greater monitoring of the
revenue situation and fixing of
accountability for the same on itsemployees. It started monthly meetings at
the zonal levels which were attended by the
Chief Engineer and the Members of the
Board. The objective of the meeting was to
familiarize all concerned officers with the
extent of the problem, fix performance
parameters for the succeeding month and
monitor past performance.
GEB adopted the feeder manager approach
to make the field level officer accountable
and through monitoring of their
performance, achieve results in form of
reduction in transmission and distribution
(T&D) losses. Similarly, it held Deputy
Engineers and Junior Engineers responsible
for sub-division wise revenue performance
parameters such as reduction in arrears.
Efficiency improvement
One of the biggest achievements of GEB
was its drive against power theft. GEB took
stringent measures to curb theft of power
and dealt sternly with cases of theft and
non-payment of bills either by individuals or
by companies. It appointed 500 retired
army personnel to check power offenders
and set up a vigilance department headed
by an IPS officer in the rank of Additional
Director General of Police on deputation
from the Government of Gujarat. Further,
introduced a scheme of cash reward (based
on the recovered amount due to
submission of information) as an incentive
to encourage people to come forward and
submit information on theft. For eligibility
for getting cash, the power theft informer
had to submit detailed information on a
prescribed format. The name, address and
amount paid to the informer were kept
confidential.
Besides this, GEB formed 74 inspectionsquads under this vigilance department. 11
squads were dedicated to checking HT
installations and the remaining were
required to check LT industrial, commercial,
residential installations. These squads
conducted raids during odd hours.
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Power distribution reforms in Gujarat
While many theft cases were disconnected
immediately upon detection and
reconnected only after the violators paid
their arrears, many violators were convicted
by the court. For this purpose, GEB
appointed managers who were accountable
to settle the case. GEB received support
from GoG in the form of five dedicated
police stations at Surat, Baroda, Sabarmati,
Rajkot and Bhavnagar which were set up
only to deal with cases of power and power
property theft. Officers of the rank of DSP,
PI, PSI, and ASI from the state police
department are working on deputation to
facilitate the functioning of these police
stations. Some retired officers from the
state police department are also posted
here as Officers on Special Duty.
In a span of four years almost all
connections, both High Tension (HT) and
Low Tension (LT), were checked and
verified. Consequently, sealing of
connections was carried out and by 2005
GUVNL had sealed almost 13.89 lakh
connections in the state. In 2004-05, GUVNLrecovered Rs 16 crore by settling 36,982
civil suits of power theft and malpractices1.
Distribution Reforms in Gujarat and their
Impact
The focus areas of distribution reforms in
Gujarat have been as follows:
Reduction of distribution losses
Commercial loss reduction
Improvement in revenues
Improvement in customer services
REDUCTION OF DISTRIBUTION LOSSES
The distribution companies in Gujarat have
focused on reducing distribution losses by a
combination of measures such as
implementation of technology, strict
measures to tackle theft, strengthening of
the network, and changing processes and
procedures.
Jyoti Gram Yojana
Though the villages in the state were largely
electrified as per prescribed parameters,
there was a significant gap in the quality of
power supplied to these villages. This was
attributable to the unauthorized use of
power in these villages through illegal
means resulting in frequent transformer
failures, poor voltage stability and poor
reliability of supply. Further there was a
rapid increase in demand for power in therural areas. In this backdrop, the GoG
launched the Jyoti Gram Yojana (JGY) as a
pilot initiative in eight districts in
September 2003 with the objective of
supplying reliable and quality power. This
scheme was part of the bigger objective of
facilitating growth of the rural economy in
the state. The pilot was successfully
completed in October 2004 and in
November 2004 the scheme was extended
to the entire state.
The JGY had the following characteristics:
Bifurcation of rural feeders into:
o Agricultural feeders catering solely to
demand for agricultural purposes
o Rural feeders catering to load other
than agriculture
Erection of 11/22 kV HT lines in rural
areas to separate the agriculture loadfrom the village transformer centre
o Metering of Transformers on JGY
Feeders
o Providing round the clock 3-phase
power supply to consumers other than
agricultural consumers while ensuring
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Power distribution reforms in Gujarat
improved quality of minimum 8 hours
continuous power supply at pre-
determined schedule to agriculture
At the end of FY 2007-08, 17839 villages
were covered under the JGY. It involved
laying a parallel rural transmission network
across the state involving the erection of
15,500 transformers and 75,000 km of lines
at an investment of Rs 1,200 crore. The
investment was almost entirely funded
through grants from GoG (Rs. 1017 crore)
with the remaining funds being contributed
by the concerned DISCOMs, the Asian
Development Bank and schemes such as
the APDRP, the MLA fund, etc
6
. Jyotigram Yojana has been successful in
providing multiple benefits to both the
residents of villages as well as the Discoms.
Some of the prominent effects seen as a
result of implementation of this scheme
are:
Improved standard of living: The
Jyotigram Yojana has led to a substantial
improvement in the standard of living of
the people in the rural areas, as they are
now able to access and use a wider
variety of goods and instruments.
Development of small scale industries: It
has led to development of Industries in
Rural sector due to better and improved
availability of power supply.
Local employment: The industrial and
economic development in rural areas has
lead to availability of more employmentopportunities in villages.
Reduced emigration from rural areas:
Shemes like Jyotigram Yojana help in
reducing migration from Rural to Urban
areas due to all of the above mentioned
benefits. The non-farm activities, both
trade and industry have benefited
significantly due to the scheme. This
provides avenues to the rural population
to increase their earning power and
improve their standard of living. Besides
there is an improvement in the
availability of essential social services like
hospitals, water supply and sanitation
services. This reduces the incentive of
emigration of people from their native
places. Reduced emigration also helps
urban areas by reducing the load on their
infrastructure.
Initiatives for technical loss reduction
In order to minimize distribution lossesvarious distribution companies in Gujarat
started upgrading their infrastructure. A
number of steps were taken to adjust
existing infrastructure so as to optimize
costs and minimize losses.
Feeder Bifurcation: Feeder bifurcation
done under JGY has an impact on
technical losses as well. It led to lesser
overloading of transformers and
conductors. Also it reduced ampere
loading of feeder by which I2R losses can
be reduced.
Reduction of HT / LT ratio: Distribution
companies in Gujarat took steps in order
to improve their HT/LT ratio in order to
reduce technical losses. Some of the
steps taken are:
o Use of HVDS: Discoms introduced use of
high voltage distribution system (HVDS)in Gujarat. HVDS is a practice whereby
the HV line is extended up to the load.
Required supply is then tapped off from
3-phase HV mains in proximity of a load
point through a distribution
transformer of lower capacity. This kind
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Power distribution reforms in Gujarat
of arrangement reduces the length of
LT line to just that of the service cable.
Implementation of HVDS also leads to
better reliability in the system as the
unauthorized connections, if any, are
now connected to HV line. HV line has
the capacity to handle the extra load
during peak hours and hence tripping of
electricity caused due to overloading
are reduced.
o Replacement of low capacity lines with
HV lines and usage of adequate size of
conductors
Optimum loading of transformer: The
loading and positioning of distribution
transformers was done so as to reduce
copper losses / iron losses. Usage of
amorphous transformers was also
introduced.
COMMERCIAL LOSS REDUCTION
Commercial losses suffered by distribution
utilities have a single dominant reason:
power theft. Gujarat was no exception to
this fact and hence strict measures were
taken to control power theft.
The initiatives started by GEB have been
continued by GUVNL as well as the
DISCOMs. The Vigilance Department is now
part of GUVNL and keeps a watch on
pilferage of electricity in the state. It
continues to have provisions for submission
of information regarding power theft.
Engineers from the DISCOMs have been
deputed to GUVNL to co-ordinatecentralized mass checking drives in so called
strong areas. Based on the consumption
patterns of the feeders, theft prone areas
were identified and massive anti-theft
drives were organized with the help of
police squads.
The move was unpopular and there was
stiff resistance from the people. So much
so, that in one instance an official was
kidnapped by some locals.
Other steps that were taken to avoid future
occurrences of theft are:
o Installation of new meters:
Approximately 11.8 lakh1 metal meter
boxes were installed for better energy
audit and prevention of power theft.
Meters were shifted outside the
premises with separate services,
particularly in towns. For heavy
consumers or seasonal consumers
meter reading was done on a weeklybasis.
Metering of feeders and transformers
was also done. Energy audit to ensure
zero theft was done regularly. Also
billing data was analyzed for
irregularities.
o Improved cash collection services:
GUVNL did set up almost 1,000 centers,
outsourced to private agencies to carry
out cash collections, to expand
collection reach. To further improve
cash collection 9,000 rural post offices
were also used. The collective result of
these efforts was seen as cash
Chart 2
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Power distribution reforms in Gujarat
collection increased from Rs 10,204
Crores in 2004-05 to Rs 14,767 Crores in
2007-087.
o Insulated/Aerial bunch conductor:
Insulated conductors were used to
reduce the instances of power theft by
unauthorized connections. In aerial
bunched conductors three conductors
are twisted into a thicker insulated
cable which makes tampering with
power-line difficult.
REVENUE IMPROVEMENT MEASURES
To improve its financial health Gujarat
state’s Discoms took a number of steps
starting from reducing its costs toincreasing the number of connections.
Some of these revenue improvement
measures that were taken along with
reduction in distribution and commercial
losses to bring power distribution utilities to
profitability are:
Reduction in power purchase cost: In
2003-04, renegotiating of power purchase
agreements (PPAs) began with the four
independent power producers (IPPs) —
Essar Power, Gujarat Paguthane, GIPCL
and GSEG. This led to savings of Rs 4.95
crore in that financial year. Considering
the fact that dues to the IPPs were at a
staggering Rs 1,300 crore in 2003-04, IPPs
were asked to work out a compromise.
Otherwise, it would have resulted in a yet
another sick state corporation and would
have led to suspended operations. In
another round of negotiations in 2005-06,
they managed to get a further reduction
of Rs 64 crore1.
Centralized purchase cell: A centralized
purchase cell was created to take the
responsibility of timely and cost effective
procurements of materials and inventory
planning. A development which came
more in the form of a boon was the
notification from the Ministry of
Environment and Forests to use washed
coal with ash content of less than 34%,
which is less polluting, for power plants.
This step led to savings of almost Rs
137.93 crore over the period of 2002-061.
Releasing new connections: Camps were
arranged in poor areas and slums for on
spot release of connection. A number of
schemes, like TASP (Tribal Area Sub Plan),
Kutir Jyoti, Zupadpatti, were started to
provide connections to poor people
Settlement of Old dues: Voluntary
disclosure schemes and one time
settlement scheme were also started to
clear old dues. One time settlement
scheme was availed by 28793 consumers6
CUSTOMER SERVICE IMPROVEMENT
Providing better consumer services is one of
the major challenges faced by distribution
companies in the country. Consumers face a
number of problems like delay in release of
new connection, delay in attention being
paid to complaints, queries regarding bills
not being addressed etc. to name a few. To
overcome all these problems Discoms in
Gujarat took following measures:
Customer care centers: Customer care
centers were set up at all sub-divisions,
divisions and circle offices of distribution
companies. These centers took care of allthe customer queries related to new
connection, billing, change of name
procedures, technical parameter related
queries etc.
Trouble call management center: Trouble
call management center was setup to
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Power distribution reforms in Gujarat
register and resolve power supply related
complaints through telephone.
Consumers can register their complaints
which are dispatched to concerned sub-
division. Once the problem is resolved
status is updated by site/sub-station.
Consumers can check status of their
complaints and other details through
their customer no.
Bill collection arrangements: Distribution
companies in Gujarat have taken a
number of measures to ensure ease in bill
payment to consumers. All time payment
centers have been set up to allow bill
payment facility to be available 24 hours a
day. Bill collection arrangements have
been made with post offices, banks and
other private agencies to provide
increased number of collection centers.
To reduce the time people spend standing
in queue while paying their bills retired
employees were hired. With increased
number of booths, manned by these
retired employees, bill collection was
done more swiftly.
Introduction of Geographical Information
System (GIS): GIS is a technology which
integrates various information within a
single system by putting maps and other
kinds of spatial information in digital
forms, makes connection between
activities based on geographic proximity
and helps in decision making for system
planning and maintenance.
GIS is helpful in locating consumer
complaints immediately as it can index
consumers directly to poles based on the
geographical and spatial data available.
GIS also allows identification of voltage
and regulation problems relating to HT &
LT network.
Outcome of reforms and initiatives
Post reforms Gujarat has turned out to be
one of the few states in India which can
boast of power availability round-the-clock
in most of its towns, cities and villages.
However, reforms in Gujarat led to
formation of in four power distribution
companies. Performance across these
companies has not been identical and varies
according to the demography of their
distribution areas. Various parameters
indicating the performance of power
distribution companies in the state are
discussed below:
AT&C losses: The distribution companies
in Gujarat inherited a distribution
network with high AT&C losses. In the
year 2004-05 GEB reported AT&C losses
at 35.2%3. Post reforms a number of
initiatives were taken to reduce both
technical and commercial losses. AT&C
losses for the state were reported at
22.6% in the year 2007-08 by GUVNL7.
AT&C losses reported by individual
distribution companies have also reduced
overtime as shown in Table 1. While other
distribution companies have AT&C losses
less than 20%, PGVCL still has very high
Chart 3
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Power distribution reforms in Gujarat
losses. PGVCL reported AT&C losses at
33% for the year 2006-073.
Distribution losses: Distribution losses for
the Discoms have decreased from what
they inherited. Gujarat Electricity
Regulatory Commission (GERC) sets target
distribution losses for each Discom
separately. All Discoms, except DGVCL,
reported an increase in their distribution
losses for the year 2007-089.
Collection Efficiency: The Collection
efficiency of GSEB in Gujarat has been
high at about 97% in 2003-04 and 2004-
05. Post reforms collection efficiency has
improved and was reported around98.6*% for the year 2006-073.
Collection efficiency for different
distribution companies is as shown
below:
Subsidy: Subsidy received by GSEB was Rs
1527 Crores in 2003-04. The subsidy
reduced post unbundling to 1178 in 2005-
063. However there has not been any
significant reduction in subsidy received
since then. The total subsidy received by
four distribution companies for the year
2007-08 was Rs 1182 Crores8.
Subsidy received by individual distribution
companies have not reduced significantly
since reforms. Only MGVCL has seen a
decrease in subsidy received from Rs 101
Crores in 2005-063 to Rs 58 Crores in
2007-088.
Chart 4
Table 2
Table 3
*Data for Gujarat has been calculated on the basis through weighed average using Units sold
Table 1
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Power distribution reforms in Gujarat
Financial viability of the distribution
companies:
o Gap in cost and revenue realized: Gap in
ACS and ARR has reduced from Rs
0.51/KWh in 2002-03 to Rs 0.24/KWh in
2007-08*
for state of Gujarat (as shown
in Chart 5). This decrease is attributable
to a number of initiatives taken to
reduce commercial as well as technical
losses.
Gap in ARR and ACS for distribution
companies varies by a great margin.
While DGVCL had a gap of 5 paise/KWh
in 2007-08, UGVCL had the gap of 44
paise/KWh.
o Profitability: The distribution companies
in Gujarat have been making losses
without subsidy. These losses haveincreased for DGVCL and PGVCL.
MGVCL has seen a decrease in losses
from Rs 84 Crores in 2005-06 to Rs 55
Crores in 2007-08. For UGVCL losses
have increased marginally from Rs 575
Crores in 2005-06 to Rs 577 Crores in
2007-08.
However with subsidy all the Discoms
have been profitable.
Table 4
Table 5
Chart 5
Table 7
Table 6
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Power distribution reforms in Gujarat
Conclusion
Gujarat is one of the few states where
several reforms were initiated before the
actual unbundling of SEB. A number of new
initiatives were taken post restructuring by
the Discoms to tackle the many problems
facing the distribution system. Some of
these have now been adopted by other
states in one form or other.
The impact of distribution reforms can be
felt in decreased losses and improved
collection efficiencies. Also the deficit
condition of the state has also improved
over the years. Peak deficit for the state
reduced from 30% in 2006-07 to 24% in
2008-09. Energy deficit for the year reduced
from 13% in 2006-07 to 10% in 2008-09.
Individual performance of distribution
companies in Gujarat has not been same.Multiple factors have caused variation in
their performance despite following the
same reform measures, one of them being
different customer mix they inherited (refer
to Annexure – I). Agricultural sector’s
contribution to revenue has been less than
their percentage share in sales mix and
industrial sector contributed to more than
half the revenues for all the companies. This
reflects cross subsidization being done and
hence a benefit for companies havinghigher percentage of industrial sector.
DGVCL and MGVCL require lesser subsidy
than PGVCL and UGVCL which can be
attributed to lower percentage of
agricultural sector in their sales mix.
However despite inheriting similar
consumer mix, performance of DGVCL and
PGVCL has lagged behind that of MGVCL
and UGVCL respectively, in terms of
reduction in AT&C losses and containment
of subsidy requirement. Similar difference
in their performance is apparent when
comparison is done on Quality of Service
(QoS) parameters. In the absence of data on
the QoS parameters prior to restructuring
and quality data on QoS parameters
currently on an annual basis, it is difficult to
comment on the extent of improvement
made in the QoS.
Finally, the profitability of Discoms without
accounting for subsidy remains under
doubt. Lowered dependence on the state
government as far as subsidies are
concerned is a must in order to achieve theultimate goal of financially sustainable
power distribution system.
Table 8
Table 9
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Power distribution reforms in Gujarat
Sales mix: Distribution sector in Gujarat was divided into four companies and all these
companies inherited different mix of consumers depending on the area served. WhileDGVCL and MGVCL got a consumer mix containing predominantly industrial
consumers, PGVCL and UGVCL inherited a consumer mix having a large percentage
of agricultural consumers. Over the years all the companies have seen a marginal
decline in sales to agricultural consumers’ as percentage of sales. Share of industrial
consumers has increased significantly for PGVCL from 32.4% in 2005-063 to 41.6 in
2007-089
Revenue mix: The revenue mix of companies varies according to their sales mix.
However approximately half of the contribution to revenue is made by industrial sector
for all the companies. Contribution by agricultural sector is quite low despite having a
large share of sales in PGVCL and UGVCL.
Table 1
Table 2
ANNEXURE - I
Table 2
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Power distribution reforms in Gujarat
Cost components: The cost components as percentage of total costs have not varied
much for the distribution companies. However most of the companies have seen rise in
employee costs as percentage of total costs.
Table 3
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REFERENCES
Presentation by Madhya Gujarat Vij Company Ltd. available in the Report on ‘Loss reduction
strategies’, September 2008, Forum of Regulators
Co-management of Electricity and Groundwater: Gujarat’s Jyotirgram Yojana, Strategic
Analyses of India’s NRLP, Tushaar Shah, Regional Workshop at Hyderabad, August 2007
Presentation by Gujarat Urja Vikas Nigam Limited on Gujarat Power Sector Initiatives at the
Regional Conference on ‘Excellence In Public Service Delivery’, YASHADA, PUNE, October
2007
http://www.karmayog.org/electricitynews/electricitynews_11067.htm
Study on Impact of Restructuring of SEBs by Indian Institute of Public Administration (IIPA),
September 2006
Gujarat electricity board’s turnaround: complete rural electrification in Gujarat, London
Business School, October 2008
Reforms and Loss Reduction Strategies- Gujarat Experience by Mr. P R Chaudhary, Officer on
Special Duty Uttar Gujarat Vij Co. Ltd.
Co-Management of Electricity and Groundwater: An Assessment of Gujarat’s Jyotirgram
Scheme, Economic & Political Weekly, February 2008
Asian Development Banks: Reports available under Technical Assistance: 29694 Gujarat
Power Restructuring
http://www.gercin.org/orders_tariff.php
http://www.gercin.org/sop1.php
http://www.gercin.org/rims1.php
1 Report on Gujarat Electricity Board – A Benchmark in the progress of SEB reforms by Indian Institute of Planning andManagement (IIPM) Ahmedabad, 2006
2 Asian Development Bank, RRP:IND 29694, Report and recommendation of the President to the Board of Directors onproposed loans and technical assistance grants to India for the Gujarat Power Sector Development Program, November2000
3 Report on the Performance of The State Power Utilities for the Years 2004-05 to 2006-07, Power Finance CorporationLimited
4 Asian Development Bank, RRP:IND 29694, Report and recommendation of the President to the Board of Directors onproposed loans and technical assistance grants to India for the Gujarat Power Sector Development Program, November2000
5
Asian Development Bank, RRP:IND 29694, Report and recommendation of the President to the Board of Directors onproposed loans and technical assistance grants to India for the Gujarat Power Sector Development Program, November2000
6 Reforms and Loss Reduction Strategies- Gujarat Experience by Mr. P R Chaudhary, Officer on Special Duty UttarGujarat Vij Co. Ltd.
7 GUVNL Annual Report 2007-08 8 Annual reports for the financial year 2007-08 of UGVCL, DGVCL, PGVCL and DGVCL 9 http://www.gercin.org