Industry & Economy
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Economic Survey
Power reforms yet to benefit SEBs
Our Bureau
New Delhi
,
July 7
THE power sector reform measures undertaken by the States with Central support have not yet made a significant impact on the finances of the State electricity boards (SEBs) across the country, according to the Economic Survey, which was tabled in Parliament.
The Survey indicates that during 2003-04, the cumulative SEB losses have mounted over the previous year's figures and this is likely to rise even further.
This phenomenon is accentuated by the fact that State funding of subsidised power supply is reducing even though the gross subsidy is increasing.
According to the Survey, on a cumulative basis, during the year the gross subsidy involved was Rs 31,941 crore.
As per the annual Plan projection of the States, this is set to rise by five per cent to Rs 33,797 crore in the current fiscal.
For the period under consideration, the Government subvention is expected to drop by Rs 300 crore.
Meanwhile, the commercial losses are expected to rise from Rs 10,090 crore in 2003-04 to Rs 10,556 crore in 2004-05.
On the reform front, the UPA Government has said that it would extend the last date for unbundling of SEBs as demanded by several States.
The Electricity Act, 2003 prescribed that all SEBs should be unbundled into separate transmission, distribution and generation entities by April this year.
It, however, also provided for a consultation process between the State and the Centre in order to defer this deadline.
"In view of the concern expressed by a number of States, the mandatory date for unbundling and replacing the SEBs will be extended."
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