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 Business & Economy   


Power Position

POWER SECTOR REFORMS

In the changed set up with electricity bill 2003 having been approved by the Parliament the power sector reforms have been speeded up in whole of the Country & Punjab is no exception. The power sector reforms as such envisages availability of quality power at an competitive rates to the customers have been undertaken with the unbundling proposals of PSEB, read reemployment of existing work force for gainful utilization of the human resources have been undertaken. Certain administrative measures have also been taken for cleansing the administrative set up.

Govt. of Punjab is committed to reform the Power Sector with the objective of:

  • Achieving commercial viability. It is a matter of pride that PSEB has turned around during 2003-04 earning a commercial profit of about Rs. 180 crores

  • Providing reliable quality power to all the consumers in the State at the affordable rates.

Salient points of the Power Sector Reforms initiated in the State of Punjab are given as under: -

MEMORANDUM OF UNDERSTANDING (MOU)

MOU signed between Ministry of Power, Govt. of India and Govt. of Punjab on 30.3.2001 to affirm the joint commitment of two parties to reform the power sector in the State.

REFORMS – OPERATIONAL & FINANCIAL ACTION PLAN (R-OFAP)

  • R-OFAP has been drafted to monitor the implementation of MOU

  • Committee headed by Chief Secretary is acting as Steering Committee to monitor     the implementation of reforms.

PUNJAB STATE ELECTRICITY REGULATORY COMMISSION (PSERC)

  • PSERC is fully functional and has pronounced two tariff orders for 2002-03 and 2003-04.

  • Free electricity to agriculture consumers has been withdrawn.

  • Third tariff order for year 2004-05 is under consideration with PSERC & likely to be pronounced by Oct,2004

IMPROVEMENT IN POWER GENERATION EFFICIENCY

  • PLF of Thermal Plants in the State is 80.2% against the all India average of 69%.

  • Plant availability factor is 87.87% against the all India average of 80.3%.

  • Heat rate of the new Thermal Plants have been brought down during 2002-03.

  • Heat rate of the old Thermal Plants also expected to be improved with R&M.

  • Coal washery arrangements are being made to improve the quality of the coal used in PSEB Thermal Plants.

  • Transit Coal losses of Thermal Plants reduced and measures are being taken to reduce further.

  • For R&M of GNDTP Bathinda of Unit-I & II based on RLA study PFC has sanctioned a loan of Rs.183.04 Crore and Govt. of Punjab has agreed in principle to stand guarantee for availing loans.

  • RLA study of GNDTP Bathinda Unit-III & IV has been completed and the Board has approved project report.

  • &M of Shanan Power Plant under APDRP scheme has been completed.

  • R&M schemes for UBDC and MHP Power Houses are under preparation.

ENERGY AUDIT

  • Electronic Meters have been installed on all the 11KV incoming and out-going feeders including all independent LS consumers.

  • Bus bar losses have been brought into within limit.

  • Consumer Indexing, feeder wise, transformer wise has been completed.

  • Losses are being worked out at Circle/Division-wise w.e.f.April 03

  • Feeder wise energy audit shall be started shortly

  • All consumers (except AP) are metered

METERING PLANS

  • Electro-magnetic meters installed at all the consumers premises are being replaced with electronic meters in phases.

  • All HT consumers with load more than 100KW and MS consumers with load more than 70KW have been provided with electronic meters.

  • All 11KV feeders have been provided with electronic meters and it is expected that remaining 220/132/66/33kV feeders will be provided with electronic meters by the end of this year.

  • 11.74 lac single phase and three phase electronic meters have been installed by March, 2004 and procurement of more meters is under process for providing electronic meters at the remaining:

    • MS consumer’s premises.

    • All SP consumers’ premises.

    • General Service Consumers premises.

  • All new AP consumers are provided with metered supply. A comprehensive plan has been chalked out to provide meter on all existing consumers within 3 years time.

  • All consumers except AP will be provided with electronic meters and AP consumers will be provided with electromechanical meters in a phased manner by 31.03.07.

  • Action Plan has been drawn and implementation has started for providing meters on distribution transformers.

T&D LOSSES

  • With Electronic metering, energy auditing and anti theft measures T&D has been calculated as 25.35% for the year 2003-04 showing a cumulative reduction of about 5.5% overall for the last four years.

  • Memorandum for making more stringent and result oriented Anti-Theft Laws is under active consideration of the State Govt., which will eliminate the theft of energy.

REVENUE BUOYANCY

With Electronic Metering, Energy Auditing, Anti Theft measures and consequently reduction in T&D losses there is buoyancy in the revenue i.e. Units billed for 2002-03 has increased as compared to increase in power availability:

Increase in Power Availability over the previous year           = 7.43%

Increase in Units billed over the previous year (including AP) = 6.42%

ADOPTION OF INFORMATION TECHNOLOGY

  • Billing of all consumers stands computerized.

  • Stores Operations have been computerized.

  • Computerization of Management system is under implementation.

  • PSEB has also launched its web site and important information is available to the public on the Internet.

  • NITs are put on Web Site for giving worldwide publicity.

ACER DEVELOPMENT AND REFORM PROGRAM (APDRP) CELEBRATED POW

1.         APDRP schemes sanctioned during the year 2000-01 and 2001-02

 a)   Renovation & upgrading of Shanan Hydel Project

Cost of the Scheme                                     = 11.35   Crore

Funds received and utilized                            =  10.88 Crore

b) Strengthening and Upgrading of Sub Transmission & Distribution System of Patiala, Khanna & Mohali Operation Circles:

Cost of the scheme                                      =  63.42   Crore

Funds received                                            =  48.835  Crore

Funds utilized                                              =  40.84   Crore

                                               

2.         APDRP Schemes approved during the year 2002-03

Ministry of Power, Govt. of India has approved 12 no. Schemes for Strengthening and Upgrading of Sub Transmission & Distribution System of 12 no. cities/circles during the year 2002-03,

Cost of the schemes                                    =  667.46  Crore

Funds released by MOP, GOI                          =  179.605 Crore

Matching funds received from REC                  =  83.43    Crore

Funds utilized / expenditure incurred  (7/04)     =  134.35  Crore

3.         APDRP Schemes sanctioned during the year 2003-04

No. of Schemes Sanctioned                           = 7 Nos

Cost of the Schemes                                    = 38.92 Crore

Funds utilized/expenditure incurred upto 7/04    =3.75 crore

MAN POWER RATIONALIZATION

  • Various functions are being identified which may be out-sourced.

  • Board has already initiated various steps to reduce manpower.

  • Freeze on recruitments and creation of new posts.

  • Redeployment of surplus staff through revision of staffing norms.

  • Pool of surplus posts have been created and wherever creation of new posts is absolutely essential these are created by diversion from the surplus pool.

  • With various measures taken has resulted in reduction of manpower deployed from 93029 as on 31.12.1998 to 87899 as on 31.12.2002.

UNBUNDLING AND CORPORATIZATION OF PSEB

With the enactment of Indian Electricity Act 2003 by the Parliament in June 2003 and introduction of  Electricity Bill 2003 in the last session of Punjab Assembly for restructuring of Power Sector in the State, PSEB is under going the reforms through unbundling and private participation resulting  in huge addition in the generation capacity as well as better consumer service and over all prosperity in the State.

PUBLIC & PRIVATE PARTNERSHIP

  • Agreement signed with private company for setting up of 500MW Goindwal Thermal Power Plant.

  • After passing of new electricity bill 2003 by Parliament, gates have been opened for providing free access to private participation in the power sector.

SECURITIZATION OF OUTSTANDING DUES OF CPSU’S BY GOP

Tripartite Agreement between the State of Punjab (Deptt. Of Finance), Govt. of India (Ministry of Power) and Reserve Bank of India has since been signed on 20.3.2003. Further figures of outstanding dues of NTPC, NHPC, PGCIL & NPC stand reconciled and had been supplied to Dy. Secretary/Finance to Govt. of India, Ministry of Power, New Delhi through Govt. of Punjab, Deptt. Of Power.                                     

REVIEW OF MAJOR PROJECTS UNDER IMPLEMENTATION

a) GHTP Stage-II Lehra Mohabbat (2x250MW)

  • PFC has sanctioned a loan of Rs.1452 Crore

  • Negotiations have been finalized with M/s BHEL for the construction and a Special Purpose Vehicle (SPV) is being formed.

 b) MHP Stage-II (18MW)

  • A loan of Rs.112.716 Crore has been approved by REC.