Problems before Mahavitaran Action Plan, Achievements & Future Plans Towards Reforms

1. Problems before Mahavitaran Action Plan, Achievements & Future Plans Towards Reforms

2. Problems before Mahavitaran (June 05) • Shortage of Power and Load Shedding of more than 4000 MW (500MW Chandrapur under long Outage) • High Distribution Losses (31.14% in 04-05) • Large Amount of Outstanding Arrears (Rs. 8130.61 Cr.) • Highly Deteriorated Distribution Infrastructure • Large Pending Applications for Ag Connections (1.7 Lakhs Paid App) • Poor Response to Consumers • Employee Motivation • Financial Losses

3. Action Plan to Resolve the Issues • MSEDCL’s Mission Statement • 10 Point Action Plan • Communication Plan • Organizational Changes

4. Action Plan and Achievements in 2005-06 • Shortage of Power and Load Shedding of more than 4000 MW LOAD MANAGEMENT CAPACITY ADDITION PLAN • A) Load Management • Single Phasing :7800 villages completed – Load Relief : 960 MW • Gaothan feeder Separation :90 feeders completed- Load Relief : 104 MW • Akshay Prakash Yojana : 4611 Villages, 960 MW • Energy Conservation : 4.5 Lakhs CFLs, 9 MW • Pune Zero Load Shedding Model • Total Load Managed: 2122 MW Load Curve for APY & Single Phasing

5. Shortage of Power and Load Shedding of more than 4000 MW Contd…… B) Capacity Addition Availability Plan Up to FY 12 • Plan of 19000 MW to meet deficit of 10000 MW in 5 years MahaGenco – 6178 Central Sector – 2753 Interstate – 591 RGPPL - 1768 IPP – 3973 Ultra Mega PP – 3840 2006-07 (MW): Mahagenco – 364, Tarapur - 158, NTPC (V’chal, Sipat, K’gaon)– 316, Ghatghar 200, RGPPL – 650: Total 1688 MW • Power Purchase at High Cost Total: 19103 MW

6. Shortage of Power and Load Shedding of more than 4000 MW Contd…… Future Plans (Load Management) • Single Phasing Phase II - 4515 villages with expenditure of Rs. 270Cr. by March 2008 • Gaothan Feeder Separation-2500 villages by 06-07 and balance by 2007-08 • Energy Conservation- • CFL Launch in entire Maharashtra ( 3 Crores of CFLs to be distributed in entire Maharashtra within next 1 year) • Capacitors- • LTLMS on 62666 DTCs, Fixed capacitors on 19900 DTCs Abstract:

7. High Distribution Losses (31.14% in 04-05) • Action Plan & Achievements • Energy accounting and fixing of responsibility at all levels - 80% Feeders’ EA Completed, 50,000 DTCs Metered & EA Completed • Theft reduction drive including abetment & action against employees: • - FIR Against 22 Employees • - Disciplinary Action Against 389 Employees • - 110 Flying Squads Deployed • - 26572 Thefts detected • Outsourcing of Meter Reading, Bill Distribution and Collection • Bhiwandi Franchisee Finalized • HVDS • Centre of Excellence - DRUM Project at Aurangabad : Tenders Invited • Commercial Intelligence Wing Set Up LOSSES REDUCED BY 3.15% TO 27.9% IN 2005-06

8. High Distribution Losses (contd…) • Future Plans • Distribution Losses to be reduced to 19 % by 2008-09. [with 3% reduction each year] • Energy Audit of the remaining 2830 feeders to be completed during this year • Metering of 1.5 Lakh DTCs to be completed by March 2007 • 6 police stations to be set up • Bhiwandi to be handed over to Franchisee • High Loss feeders (Losses above 50%) to be franchised out (Feeder Franchisee Scheme) • High Loss DTCs to be franchised out (Micro Franchisee Scheme) • 16.65 Lakh Ag connections to be metered by the year 2007-08. • 20,000 HT consumers will get AMR • Ludhiana Pattern to be introduced on large scale.

9. Low collection efficiency • Action Plan & Achievements • After Company formation Monthly repatriation has increased from Rs. 932 Cr. to Rs. • 1426 Cr. • Collection Efficiency has reached 95.32% in 2005-06. • Elimination of average billing: Normal Billing Increased to 84.2% in 2005-06 from • 77.44% in 2004-05. • 100 % disconnection of consumers with arrears above Rs 5000/- • Reduction of arrears: RCI Arrears reduced from Rs.1466 Cr. In FY 05 to Rs.1360 Cr in FY 06 • E-billing (all Bills), Spot billing (20 Cities), ATM Cash Collection Centres (50), Drop Boxes, E- • payment Introduced. • Special PD Arrears Recovery Team Set Up: Rs. 8.28 Crs Recovered.

10. Low collection efficiency (contd..) • Future Plans • Spot Billing and ATMs at all circles • Mobile Collection Centres • Increasing the scope of e-payment • Collection Efficiency to be increased by 2% every year

11. Deteriorated Distribution Infrastructure Objectives • Action Plan & Achievements • (Infrastructure Development Plan) • 3 years’ Load Profile at SDO Level: Prepared for 580 Sub- • Divisions (Growth of 8870 MW) • 3 years’ Infrastructure Plan to cater to the load: • DPR Prepared for 580 Subdivisions of Rs. 14524 Crores • Plan includes 590 Sub Stn, 35 Switching Stn, 68751 DTC, 84531 KM HT Lines, 23229 KM LT Lines • Project Management Consultants Appointed • Quality Control Department Set Up • Material Management Cell set Up • Rs. 5000 Cr. MOUs Signed with REC/ PFC, (15 projects approved by REC worth Rs.2256 Cr • Received In-Principle Go-Ahead from MERC

12. Deteriorated Distribution Infrastructure (Contd…..) Details of Proposed Major Works

13. Deteriorated Distribution Infrastructure (Contd…..) Financial Plan for 3 years - (FY 06-07 to FY 08-09) • Year Wise Outlay: Rs. Cr.

14. Pending Applications for Ag connections Status of Pending Ag Pump Applications as on 31-03-2006 Total Applns Recd - 3,76,385 Paid Pending Applns - 1,98,837 Test Reports Received - 1,03,601 Achievements Future Plan • Bring down the Ag. pending connections to one month in 3 years Circle Wise Break Up

15. Poor Response to Consumer • Implementation of MIS: • MIS Phase I – Computers and CMS/FEMS software provided to 345 S/Dns. • Module for Store, EA, Finance, Consumer Systems etc. • MIS Phase II – TCS Appointed, 15 Modules (including Asset Mgt, • GAD, HRMS, Training .etc.) envisaged • Communication Backbone with BSNL & Data Centre Started • Training to employees: Mandays Trained in 2005-06 increased to 36757 in comparison to 28226 in FY 2004-05. • Customer Facilitation Centres: 5 CFCs Set Up • Call Centres: 9 at Pune, Bhandup, Nagpur, Akola, Amravati, Kalyan, Ahmednagar, Nasik, Kolhapur Set Up • SCADA: Being Implemented in 10 Cities (Amravati, Aurangabad, Kolhapur, Malegaon, Nagpur, Nanded, Nashik, Pimpri-chinchwad, Sangli, Pune) • E-billing , Online payment , SEVAK ATM (50 Achieved in 2005-06), Bill junction / Bill desk • 9 Consumer Grievance Redressal Forums Set Up • Action Plan & Achievements

16. Poor Consumer Response (contd…..) • 50 CFCs to be completed by August 06 • 12 Call centres to be set up at Municipal Corporations by March 07 • 67 more SEVAK ATMs to be installed by October 06 • MIS Phase I – Computers and CMS/FEMS software will be provided to additional 220 S/Dns by March 2007 • Integration of 6 modules of MIS Phase I will be completed by October 06 • GIS Network Mapping • MIS Phase-II will be Completed in 1 Year. • Future Plan

17. 7. Employee Motivation • Action Plan & Achievements • Communication Plan & Motivational Work Shop • Reward for Good Performance of all Employees • Performance Scorecard of All Officers’ on KPIs on Internet • Increasing Officers’ Exposure to Best Practices • Voluntary Uniform, Flag & Anthem • 4 Mobile MDs Representatives • De-centralization & Regional Executive Directors • Simplification of Procedures and Transparency • Quality Consciousness • Drive Against Corruption

18. Summary of Major Achievements Monthly repatriation increased from average Rs. 932 Crores to maximum Rs. 1426 Crores Distribution Losses reduced by 3.14 % (31.14 % in 2004-05 to 28 % in 2005-06) 50,000 Urban DTCs metered and Energy Accounting started 5 years’ load Profile and Infrastructure Work Plan prepared for 580 Subdivisions of Rs. 14524 Crores for a three year period

19. Summary of Major Achievements Contd…… Effective Load Management through Akshay Prakash Yojana, Single Phasing, GFSS,use of CFLs, capacitor installation on DTCs and at sub-stations being implemented successfully for greater consumer satisfaction Bhiwandi Franchisee Finalised Employee motivation through training Communication Plan implemented for Goodwill building up Enhanced Consumer Response through CFCs, Call Centres, ATMs, E-billing etc. Pune Zero Load Shedding Model

20. Summary of Future Plans 3 years’ Infrastructure Plan to cater to the future load growth Distribution Losses to be reduced to 19 % within 3 years Energy Audit to be started on the remaining 1.5 Lakh DTCs and 2830 feeders by March 2007 Collection Efficiency to be increased to 100% within 3 years Normal Billing Percentage to be 100% in one year

21. Summary of Future Plans (Contd…..) Load Management and Capacity Addition so as to have zero Load Shedding by 2009-10 Micro franchisee and Feeder Franchisee Schemes Use of SCADA, Call Centres, CFCs etc. in all Municipal Corporation Areas 16.5 Lakh Ag Consumers to be metered by 2007-08 Bring down the Ag pending Connections to 1 month in 3 years

22. Issues with Govt. of Maharashtra • Promised Conversion of Govt. Debt of Rs. 2742 Cr. Not Cleared. • Experience of Other States • Appointment of Director (Finance), Director (HRD) • Valuation/ New Balance Sheet/ New P&L Account • Establishing dedicated police stations and special courts- Appointments of SP’s on deputation • M/s. Mula Pravara Electric Co-op Society – recovery of arrears and other pending issues • Payment of Arrears of State Govt. Dept.

23. Previous Years Major Performance Indicators • FY 2005-06: Genco: Profit Rs. 256 Cr, Transco: Profit Rs. 330 Cr. Net -13 Cr • # Values for period 05/06/2005 to 31/03/2006

24. Further Ideas . . . . . . . . . . . . . . . . ?

25. Thank You

26. ARR & Tariff Petition Summary – Total Revenue Expenditure (Rs. Crore)

27. MSEDCL - ARR & Revenue Gap Rs. Cr.

28. Proposed Tariffs

29. Need for tariff increase • Power Purchase Cost has increased from Rs 10707 Crore in FY 04 to Rs 16335 Crore in FY 07 • The average cost of supply (ACOS) has increased from Rs. 3.07 per kWh to Rs. 4.22 per kWh. • The average increase in tariff works out to 28.8%

30. Circle wise Distribution loss YoY Comparison

31. Major Performance Indicators

32. Demand Supply Gap (In MW)Instances of Peak Demand

33. Load Management

34. Power Purchase at High Cost – Monthly 2005-06 MUS, Average Cost, Total Cost

35. Communication Plan • Communication Strategy • Communication Focused towards internal Employees • Communication of reforms to consumers • Means of Communication • Workshops with field staff and with unions • Workshops conducted by Unions for members • Staff Meetings at Division/Circle Level • House Journal (E-magazine) – “Maha Vitaran Veej Varta” • Video message on Ten Point Program • Articles in Newspapers

36. Officers KKPI

37. Drive Against Corruption • Drive including abetment & action against employees: • - FIR Against 22 Employees • - Disciplinary Action Against 389 Employees

38. Pune Load Shedding Model • Total Load Required for Pune Urban Circles: 751 MW • Non Sheddable Load : 393 MW • Sheddable Load : 358 MW • CPP Generation : 90 MW (From 28 Consumers) • CPP Generators to run : 4 to 6 Hrs. / Day • Loading on Consumer : 42 Ps. / Unit • except (0 to 300 Units Consumption)

39. Major Performance Indicators (Previous Years) • # Values for period 05/06/2005 to 31/03/2006