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Page 1: 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