Center lauds Odishas power sector reforms initatives

Bhubaneswar: Union Minister for Power and New & Renewable Energy, Raj Kumar Singh has lauded the role of Odisha that has been a leader in electricity reform in the country and the current phase of reform is an example all other states should follow.
While complimenting Odisha Government, he desired that loss reduction and improvement in customer satisfaction through professional management should be brought about through private sector involvement in all other states
A two days’ Review, Planning & Monitoring (RPM) meeting was held by the Ministry of Power, Government of India in New Delhi during 9-10, January, 2020.
 While the state of Uttar Pradesh made a presentation on smart meter roll out, Odisha was asked to make a presentation on DISCOM Reforms done by the state.
Bishnupada Sethi, Principal Secretary Energy, Odisha briefed the gathering how the State of Odisha had taken the lead in the country in undertaking power sector reform with the enactment of the Odisha Electricity Reform Act, 1995.
As a pioneer in the distribution sector reform from 1st unbundling to first privatization, Odisha had led the way in the reform nearly a decade before the enactment of Electricity Act, 2003.

From unbundling of OSEB into OHPC and GRIDCO (T&D)  to corporatization of distribution segment and privatization of four DISCOMs in the year 1999 was the first phase of privatization.

After enactment of the Electricity Act 2003, Odisha again is the front runner in distribution sector reforms with the first sale of a utility under section 20 of the said Act.
Mr.Sethi stated that the current reform in Distribution sector by following a well designed framework was going to address the concerns of all stakeholders to create a win win situation for all.
While the consumer will benefit on account of certainty of tariff due to rapid AT &C loss reduction, improved customer service, improved quality of power, reliable 24×7 power supply, the employees will benefit due increased focus on capacity building, better growth opportunities and assurance on terminal liabilities.
Increased private sector investment will reduce the strain on government budgetary resources giving the flexibility to spend the resources on much needed social sector. Higher efficiency, professional management will provide dividends to the government agencies, private investor  and the electricity sector.
Mr.Sethi explained in detail about the transparent and balanced transaction framework followed by the Regulatory Commission with pre- defined target, incentives and penalty clauses. Discussion was held on the bid specific parameters like baseline setting, regulatory certainty, gain retention, capex commitment, government support, performance monitoring and freedom from past liabilities for the private investor.
 The meeting covered many topics like new reform linked distribution scheme, smart metering implementation models, multiple franchise models, power market design, rationalization of ISTS transmission charges, RoW and Forest Clearances etc. Various schemes like IPDS, DDUGJY, Metering of feeders and distribution transformers, PAT, schemes on solar and other renewable energy were reviewed by the Minister.