Power utilities improved after restructuring of SEBs: Study

New Delhi: A government-appointed study has concluded that restructuring has improved the performance of state electricity boards after their electricity boards unbundling into power generation and power transmission and distribution utilities.

The Indian Institute of Public Administration (IIPA), which conducted the study, said in its report, "On the whole, in majority of the states, there are considerable improvements in performance of the utilities after restructuring. The broad conclusion is that despite some shortcomings, the overall impact of restructuring has been positive and in the right direction."

Last year, the union power ministry had the IIPA to conduct an impact assessment of unbundling of state electricity boards in 12 states that included Orissa, Haryana, Gujarat, Maharashtra, Andhra Pradesh and Karnataka.

The assessment was aimed at pushing reforms, improving performance and attracting private participation in state utilities that had a combined loss of Rs26,150 crore in 2006-07.

However, shortly after assuming charge the UPA government gave extension to more than a dozen states for restructuring SEBs, with repeated extensions being given to many states despite opposition from employees unions and the consequent reluctance by state governments and protests from Left parties.

IIPA also pointed to the reduction in losses, higher investments and capacity additions, improvement in efficiency, customer care, billing and metering and greater accountability in states where SEBs have been reorganised.

States including Tamil Nadu, Kerala, Chhattisgarh, Bihar, Punjab and Himachal Pradesh are yet to unbundle their SEBs.