Lok Sabha Question No. 180 (STARRED), answered on 2015-12-10
Subject: Assistance to SEBs
Ministry: POWER
Asked by: VINOD KUMAR BOIANAPALLI

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA STARRED QUESTION NO.180 TO BE ANSWERED ON 10.12.2015

## ASSISTANCE TO SEBs

*180.   SHRI B. VINOD KUMAR:

Will the Minister of POWER be pleased to state:

(a) the  present  status  of  restructuring/unbundling  of  State  Electricity Boards (SEBs);

(b) whether requests for financial assistance have been received from the State  Governments  for  restructuring  and  revival  of  SEBs,  if  so,  the  details thereof;

(c) whether  any  scheme  has  been  formulated  to  assist  SEBs  facing financial crisis and are unable to purchase coal or generate electricity and if so, the details thereof along with corrective action taken thereon; and

(d) the  steps  being  taken  to  achieve  the  goal  of  uninterrupted  power supply to consumers in co-ordination with State Governments?

A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, COAL AND NEW & RENEWABLE ENERGY

( SHRI  PIYUSH GOYAL )

(a) to (d) : A Statement is laid on the Table of the House.

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## STATEMENT

STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  STARRED QUESTION  NO.180  TO  BE  ANSWERED  IN  THE  LOK  SABHA  ON  10.12.2015 REGARDING ASSISTANCE TO SEBs.

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(a) : In all the States, State Electricity Boards (SEBs) have been restructured.

(b) : No requests for financial assistance have been received from the State Governments for restructuring and revival of SEBs.

(c) : The Central Government had approved and notified in October, 2012, a Financial  Restructuring  Plan  (FRP)  for  the  State  owned  Discoms  to  enable  their financial turnaround with some conditions in term of achievements. However, as the scheme  could  not  achieve  the  stated  objective,  Government  of  India  has  on 20.11.2015 launched another scheme - UDAY (Ujwal DISCOM Assurance Yojana) for operational and financial turnaround of DISCOMs.  The scheme provides for taking over  of  DISCOM  debt  by  the  States  outside  the  Fiscal  Responsibility  &  Budget Management (FRBM) limits; reduction in the cost of power through various measures such  as  coal  linkage  rationalization,  liberal  coal  swaps,  coal  price  rationalization, correction in coal grade slippage, allocation of coal linkages at notified prices and reduction in interest burden etc.

- (d) : To achieve the goal of uninterrupted power supply to consumers, the steps being taken in co-ordination with State Governments are as under:
- (i) Capacity  addition  of  1,18,537  MW  (including  88,537  MW  conventional  and 30,000 MW renewable) during the 12 th  Plan, i.e. by 2016-17.
- (ii) Construction  of  1,07,440  ckm  transmission  lines  and  setting  up  of  2,82,740 MVA transformation capacity during the 12 th  Plan, i.e.  by 2016-17.
- (iii) Preparation  of  State  specific  Action  Plans  for  providing  24X7  Power  For  All (PFA) in partnership with the States.
- (iv) Strengthening of sub-transmission and distribution networks and segregation of  agricultural  feeders  to  give  adequate  and  reliable  supply  and  reduce  line losses  through  new  schemes  of  Deendayal  Upadhyaya  Gram  Jyoti  Yojana (DDUGJY) and Integrated Power Development Scheme (IPDS).
- (v) Promotion of  energy  conservation,  energy  efficiency  and  other  demand  side management measures.
- (vi) Expeditious resolution of issues for facilitating early completion of generation and transmission projects.
- (vii) Providing support from Power System Development Fund (PSDF) for stranded gas based generation.

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