Restructuring helps MP govt increase stake in power sector

The Madhya Pradesh government’s financial stake in the power sector has increased, instead of decreasing, under sectoral reforms initiated as part of the Central Electricity Act 2003, a draft report of the state Principal Accountant General (PAG) has said.

“The restructuring in the state power sector was initiated with a view to limit the role of the government to policy directives only, but in practice, restructuring increased its stake by way of equity in the power sector,” the draft audit performance report of the PAG, on implementation of power reforms in the state, said.

“Neither has power generation grown, nor have electricity distribution losses come down under power reforms. Many consumers have remained out of the billing purview,” the report added.

“Even the planned growth strategy to meet rising demands was not formulated and implemented since 1999-2000,” the draft report said.

“The reforms were introduced with special emphasis on promoting competition and open access to provide satisfaction to electricity consumers. However, open access failed to gain acceptance in MP,” the draft report added.

Even after a lapse of more than six years since the formation of five companies under restructuring in power sector in the state, several staff-related problems like cadre-management have not been sorted out, the draft report said.