APDRP Implementation & Power Sector Reforms in West Bengal State Electricity Board

1. APDRP Implementation &Power Sector Reforms inWest Bengal State Electricity Board July 26, 2003

2. Roadmap of presentation • Reform measures – Structural • Techno-commercial interventions • APDRP Project Implementation • Financial Business Plan

3. A. Reform measures - Structural • W. B. State Electricity Regulatory commission • Unbundling / Restructuring of WBSEB • Anti-theft measures

4. W. B. State Electricity Regulatory Commission • Date of Constitution = January 6, 1999 • Appointment of Chairman and all members of SERC already done in 1999 • Date of filing petition for tariff for 2003-2004 = December 31, 2002 • Date of Interim Tariff order for 2003-2004 = April 23, 2003 • Interim Tariff order for 2003-2004 already implemented

5. Unbundling/Restructuring of WBSEB • All thermal power stations in West Bengal are already under the W.B. Power Development Corporation • The W. B. Rural Energy Development Corporation is the nodal agency for electrification in rural areas • W. B. Renewable Energy Development Agency is providing power using non-conventional energy sources in remote areas

6. Unbundling/Restructuring of WBSEB (contd.) • As per the provisions of Part XIII (sec 131-134) of the Electricity Act, 2003 relating to Reorganisation of the Board, the State Govt has already constituted an Expert Committee to examine the matter and give its recommendations

7. B. Techno-commercial Interventions • 100% Metering Project • Energy Accounting • Techno-commercial Energy Analysis • Benchmarking of Performance parameters

8. 100% Metering Project

9. 100% Metering Project

10. 100% Metering Project Likely date for completion of all works is August 30, 2003

11. Energy accounting • Energy accounting has been started in respect of all 11 KV feeders • Necessary reports regarding ATC loss in respect of 4 divisions in 3 APDRP circles are being generated since June 2003 • Energy accounting reports in respect of all 17 circles would be generated by September 2003

12. Energy accounting • Energy accounting reports in respect of 4 Divisions are being generated since June 2003 • 17 Divisions would complete Energy accounting by August 2003 • Energy accounting reports for 32 Divisions would be generated by October 2003 • Energy accounting would be implemented in all 41 Divisions by December 2003

14. Techno-commercial analysis of Energy for WBSEB

15. Estimation of ATC loss based on Input Energy and Realised Energy

16. Techno-commercial analysis of Bidhannagar Circle

17. Techno-commercial analysis of Howrah Circle

18. Techno-commercial analysis of South 24 Parganas Circle

19. Techno-commercial analysis of APDRP towns selected during 2003-04

20. Techno-commercial analysis of APDRP towns selected during 2003-04

21. Benchmarking of Performance Parameters at State Level

22. Benchmarking of Performance Parameters at South 24 Parganas Circle level

23. Benchmarking of Performance Parameters at Bidhannagar Circle level

24. Benchmarking of Performance Parameters at Howrah Circle level

25. C. APDRP Project Implementation • APDP Schemes • APDRP Schemes during 2002-03 • Recent Initiatives in APDRP

26. APDP Schemes • APDP fund of Rs. 43.50 Crores was received in August 2001 • Expenditure till date is Rs. 23.66 Crores • An amount of Rs. 10.00 Crores was diverted to WBPDCL • Amount lying unspent is only Rs. 9.84 Crores (proposal for spending this amount on consumer metering in APDRP Circles sent to MOP) • 77.4 % of APDP fund is already utilised

27. APDRP Schemes during 2002-03 • APDRP sanctions of Rs. 66.355 Crores were given by MOP during 2002-03 • An amount of Rs. 19.02 Crores was released by MOP during 2002-03 • Rs. 19.02 Crores were received by WBSEB through State Govt during the year • Counterpart funding of Rs. 66.355 Crores was also sanctioned by PFC during this period

28. APDRP Schemes during 2002-03 • A separate bank account having No. SB-8982 has been opened in PNB, saltlake for exclusive handling of APDRP funds • To ensure quick implementation, majority of APDRP works are being done on turnkey basis • NIT has been issued for works of Rs. 74.37 Crores in respect of 9 packages in 3 Circles on June 25, 20003

29. APDRP Schemes during 2002-03 • Last date of submission of bids is July 30, 2003 • Works are likely to be awarded by September30, 2003 • Expenditure till date is Rs. 9.326 Crores • Target for Fund Utilisation during 2002-2003 is Rs. 71.82 Crores

30. Recent Initiatives for more efficient implementation of APDRP • Dedicated APDRP Cell already setup at HQ under CE(dist) consisting of motivated and experienced engineers and financial and project experts • ACCs i.e. MECON & NPC have also dedicated full-time manpower to extend necessary help to APDRP cell • Weekly progress reports are being submitted by ACCs

31. Recent Initiatives for more efficient implementation of APDRP • Fortnightly progress review is done by the CE (dist) • Member (operations) reviews the physical progress of APDRP schemes on a monthly basis • Quarterly physical & financial achievements are placed for critical appraisal before the State Level Implementation Committee

32. Recent Initiatives for more efficient implementation of APDRP • Similar APDRP cells to be setup in all APDRP Circles and circles where APDRP towns are located by August 31, 2003 • Circle managers will draw up Activity Chart for each APDRP scheme and monitor progress on a weekly basis • Exposure tours for APDRP personnel are being arranged with help from PGCIL

33. Recent Initiatives for more efficient implementation of APDRP • A team of senior APDRP officials led by CE (EDP) has just visited AP Central Co in order to implement HHI, improved Customer Care Services & web-based Customer information System in WBSEB • Three Zonal managers handling APDRP works have gone to Haryana Vidyut Prasaran Nigam to get exposure to their efficiency enhancement mechanisms and good management practices

34. Recent Initiatives for more efficient implementation of APDRP • Other APDRP officials are being sent in small groups to Karnataka, Maharashtra, Delhi,etc • 42 Group Electric Supplies having very high ATC Loss have been identified for focussed attention regarding loss control, anti-theft and de-hooking measures • Single Pole Transformers, H.V. Direct Supply and Aerial Bunch Conductors being introduced in various APDRP Towns

35. Recent Initiatives for more efficient implementation of APDRP • Customer indexing based on GIS is being done in urban and semi-urban areas in collaboration with KMDA • Load Factor analysis using software for Bulk consumers will be soon implemented • Bank collection of WBSEB dues is under implementation in North Bengal • Electronic Clearing Service (ECS) is being provided for all consumers in Bidhannagar APDRP Circle

36. Recent Initiatives for more efficient implementation of APDRP • An Empowered Committee for One Time Settlement of long pending dues to WBSEB is being constituted • Internal Audit set up of Board has been strengthened for improving Receivables Management • Very strong involvement of all the employee Unions/Associations with the APDRP Implementation through the three tier JMC

37. D. Financial Business Plan

38. Average Revenue Realised (ARR) vis-à-vis Average Cost Of Supply (ACS) for WBSEB

39. Average Cost of Supply of Power (ACS)

40. Average Revenue Realised (ARR)

41. Gap between ACS and ARR

42. Financial Performance • Budget Estimate of Net Financial loss for 2002-03 = Rs 531.49 Crores • Actual Net Financial loss for 2002-03 as per provisional figures = Rs 519.69 Crores • Budget Estimate of Net Financial loss for 2003-04 = Rs 59.54 Crores

43. Revenue Receipts during 2000-01, 2001-02, 2002-03 & 2003-2004

44. In brief .. • With the valuable guidance and financial assistance of the MOP under the APDRP scheme, WBSEB is well set to face the financial and technical challenges in the coming days • The Board is strongly determined to achieve the reform milestones set out in the MOU and the MOA and no efforts would be spared in this direction

45. Thank You Thank You