Cii To Script States Power Reform Strategy

The Confederation of Indian Industry (CII) will frame strategies for implementing power reforms in states such as Maharashtra, Madhya Pradesh, Gujarat and Goa.

The energy committee of CII is framing its recommendations based on three-pronged approach: understand ground realities, identify ways to unbundle, corporatise and privatise and work with the government on time-bound implementation on power reforms.

The CII national committee on energy has initiated a project called IDEAS - initiative to develop electricity, affordability and supply. IDEAS has captured the perception of consumers on supply and affordability of electricity and recommends a set of plans, Firdose Vandrevala, chairman (energy sub-committee) of CII (western region), said in a press release.

CII has also announced a taskforce set up to carry forward IDEAS-Maharashtra aimed at assisting the state in accelerating electricity reforms, while creating an atmosphere for overall development of the sector, Vandrevala said here on Thursday.

Among the five electricity regions, western stands first in terms of installed capacity - MP (60112.2 MW), Goa (454.8 MW), Maharashtra (15021.8 MW) and Gujarat (8836 MW) compared with all India average.

Transmission and distribution losses in the region are closer to national average level. Except Goa, all other states in the western region have higher share of agri consumption with least share of revenue realisation.

According to CII study, Gujarat has initiated reforms with financial aid from the Asian Development Bank. It has also envisaged unbundling of the Gujarat State Electricity Board and privatisation of distribution. The state has also signed an memorandum of understanding with the Centre under the APDP programme.

Goa has appointed legal consultants for corporatisation of its electricity department. The state has constituted state electricity reforms committee and has implemented 100 per cent metering for 11 KV feeders and end-use consumers, while tenders are being floated for computerisation of bills.

A CII survey has shown that the power reforms Bill has been enacted in MP and the state has also finalised an agreement with the Centre under APDP. It has completed 54 per cent metering completed for 11 KV feeder, while 100 per cent metering completed for commercial, domestic and industrial consumers and 84 per cent metering of total end users.

Maharashtra has proposed a power reform Bill, but it is yet to be approved by the power ministry. MERC is constituted and operational and has issued tariff orders. The state has achieved 40-50 per cent metering and recently proposed amendment in the Indian Electricity (Maharashtra) Act 1910 to arrest rising theft, CII said.