I. Policy Statement on Rajasthan Power Sector Reform Programme

The GoR issued Policy Statement on Rajasthan Power Sector Reform Programme on May 1999 with the following aims & objectives:-

·        To facilitate and attract investments

·        Bring about improvements in the efficiency of the delivery system,

·        Create an environment of growth in the power sector for the overall benefit of the people of the State.

The main components of the reform programme are

·        Enactment of the reform legislation to pave the way for reforms.

·        Establish an Electricity Regulatory Commission for licensing regulation and tariff determination for electricity transmission and distribution.

·        Unbundling Rajasthan State Electricity Board (RSEB) into separate compaines for generation, transmission and distribution functions.

·        Private participation in the distribution companies in a phased manner through conversion into joint venture Companies.

·        Improvements in the transmission and distribution network through World Bank assisted project.

II.Rajasthan Power Sector Reforms Act :

Rajasthan Power Sector Reforms Bill, 1999 was approved by the State Legislature on 25.9.99.  Presidential Assent on the bill was received on 28.12.99 and the bill published in the official gazette on January 10, 2000.  The act has been brought in force w.e.f. June 1, 2000.

III.                Rajasthan Electricity Regulatory Commission

i) The Rajasthan Electricity Regulatory Commission has been established and the Chairperson and Members of the Commission appointed on 2.1.2000.  The Commission was initially set up under the electricity Regulatory Commissions Act, 1998 (Central Act) and was vested with tariff determination function only.

ii) For more details on the RERC, Secretary, RERC can be contacted at telephone no. 91-141- 2741181 FAX 91-141- 2740106. The web-site address of RERC is www.rerc.gov.in

iii) With the coming into force of the Rajasthan Power Sector Reforms Act, 1999, this Commission has become a Commission under the State Act and is vested with all functions under the Act, licensing for transmission and distribution, regulation of the activities of the utilities and determination of bulk and retail tariff etc.

iv) The Regulatory Commission has framed various rules and regulation for its functioning.  The Regulatory Commission has issued license to the RVPN and three Discoms on 30th April 2001.

v) The Regulatory Commission has also approved various documents like Metering Code for Rajasthan Grid, General and Planning Code, System Operation and Load Despatch Code, Standards of Performance, Safety Standards, etc.

vi) The Regulatory Commission has been approving ARR & Tariff in respect of RVPN, RVUN  and Discoms on regular basis for ensuing financial year.

IV. Financial Restructuring  Plan

 The final Financial Restructuring Plan has been approved by GoR on 4.8.2003 incorporating therein a provision for cash transition support of Rs. 3800 crs, retention of Electricity Duty of Rs. 3951 crs., interest subsidy on IBRD Loan of Rs. 282 crs and subsidy under APDRP schemes of GoI of Rs. 145 crs up to 2011-12.

V.Restructuring of the Sector

With the notification of the Rajasthan Power Sector Reforms Transfer Scheme 2000, on 19th July, 2000 the assets, liabilities and personnel of the RSEB have been transferred to the newly formed five companies namely a generation company (RVUN), transmission company (RVPN) and three distribution companies, viz. Jaipur VVNL, Ajmer VVNL, Jodhpur VVNL. With this, Rajasthan became the first in the country to have completely separated all the three functions in a single stage. These companies have been incorporated under Indian Companies Act'1956 .

i) Power Generation

  The existing Power Stations and those under commissioning in the State sector, have been transferred to a separate generation company viz. Raj.Rajya Vidyut Utpadan Nigam Ltd. (RVUN) registered under the Indian Companies Act, 1956.             

This company has started its operation, as a wholly state owned company and the State Government may, at a later stage, invite private sector participation in this company. This Company is responsible for operating all the existing generating stations of erstwhile RSEB and to complete the projects under commissioning of erstwhile RSEB.

ii)   Power Transmission

A State owned transmission company Raj.Rajya Vidyut Prasaran Nigam Ltd. (RVPN) incorporated under the Companies Act, 1956, has been entrusted with the power transmission grid network of extra high tension lines including O&M of inter state tie lines, in so far as they pertain to the state. The RVPN is the state transmission utility in the State. RVPN has an allocation of power to the extent of 971.46 MW in shared power projects.

iii) Power Distribution

The State has been geographically divided into three distribution companies (with headquarters at Jaipur, Jodhpur and Ajmer) formed on considerations of viability and operational ease. Details of distribution companies are as under:

Distribution Company	Districts Covered	O&M Circles Covered
Jaipur Vidyut Vitran Nigam Ltd, Headquarter at Jaipur	Jaipur, Alwar, Dausa, Bharatpur, Karauli, Dholpur, Sawai Madhopur, Tonk, Kota, Jhalawar, Baran, Bundi	Jaipur City, Jaipur District, Alwar, Dausa, Bharatpur, Sawai Madhopur, Kota, Jhalawar.
Ajmer Vidyut Vitran Nigam Ltd, Headquarter at Ajmer	Ajmer, Jhunjhunu, Sikar, Nagaur, Bhilwara, Chittorgarh, Udaipur, Rajsamand, Banswara, Dungurpur	Ajmer, Jhunjhunu, Sikar, Nagaur, Bhilwara, Chittorgarh, Udaipur, Banswara.
Jodhpur Vidyut Vitran Nigam Ltd, Headquarter at Jodhpur	Jodhpur, Sri Ganganagar, Hanumangarh, Churu, Bikaner, Jaisalmer, Barmer, Pali, Jalore, Sirohi	Jodhpur City, Jodhpur District, Sri Ganganagar, Hanumangarh, Churu, Bikaner, Barmer, Pali.

These distribution companies, though presently owned by the State Government, will, in a phased manner, be converted into joint ventures (JVC) where the private partners will hold majority shares and management control including the obligation to bring in the required investments and to meet the performance obligations under the license.

 The entire process of forming JVCs and transferring the distribution business to them was scheduled to be completed by the year 2004. However, the High Court of Judicature for Rajasthan at Jodhpur in the hearing of D.B. Civil Writ Petition No. 2146 / 2000 has granted stay on transfer of assets of the erstwhile RSEB to any private Company.

iv) Finalization of Transfer Scheme

The Transfer scheme as notified by the GoR on 19.7.2000 was provisional for a period of 6 months in case of personal and 1 year in case of assets and liabilities.  The provisionality period of transfer of assets and liabilities of the erstwhile RSEB to the successor entities was extended to 18.1.2002 by the GoR. The GoR has issued amendments in the Transfer Scheme on 18.1.2002 and with these amendments the Transfer Scheme has become final.

VI. Rajasthan Power Sector Restructuring Project with IBRD Assistance.

The World Bank has indicated likelihood support for Rajasthan Power Sector Reforms to the extent of US$ 880-1000 Million over the next 7-10 years.  This loan would consist of several investment loans for strengthening of the transmission and distribution system in the State, sector adjustment loans to the State Govt. as well as financing from the International Finance Corporation for the privatized distribution companies. Out of above, a Loan Agreement for US $ 180 million has been executed with the World Bank on February 27, 2001 as a first investment loan. This loan is being utilized for strengthening of transmission and distribution system, installing LT less distribution system, capacitor installation, improving metering system and customer services, technical assistance etc. The loan was declared effective on 12th March 2001. The extended closing date for this loan is 30th June 2006. Procurement and other activities are at full swing and claims are being sent to World Bank for reimbursement.

Upto 31.5.2005 Procurement orders of goods for 249 lots amounting to Rs. 758.86 crores (covering ICB, NCB & National Shopping) have been awarded. Procurement of goods is at advance stage, Goods are being delivered and execution of schemes is in progress. Reimbursement claims for Rs. 464.20 crores have been lodged and reimbursement of Rs. 437.51 crores have been received. The World Bank has disbursed US$ 112.85 Million (62.69%) out of USD 180.0 million upto 31.5.2005. 

VII. Implementation of MoU signed between GoI and GoR

The Implementation status of MoU signed between MoP, GoI and GoR on 23.3.2001 in New Delhi is as under:

Sr. No.	Issue	Status
1.	Increase of PLF of KTPS and STPS beyond 85%.	89% PLF achieved in FY 03
2.	Maintain grid discipline, comply with Grid Code and ABT.	Being Complied ABT effective Dec 2002
3.	Securitization of outstanding dues of CPSUs.	Complied
4.	Computerized billing and effective energy audit in selected towns.	Complied
5.	Energy Audit
	·        100% metering of  11kV feeders	Completed for all 8411  feeders
	·        100% metering of all consumers	Being done in phases
	·        Energy audit of loads above 1000 KVA	Started
6.	100% electrification of potential villages by 07	96% achieved in FY 03
7.	Timely payment of subsidies.	Being paid as per FRP
8.	Privatization of Distribution.	Being reviewed in light of Electricity Act, 2003

VIII.           Electricity Act 2003

The Central Government has enacted Electricity Act, 2003 from 10th June 2003. The activities required to give effect to this Act have been completed.

For more details on the reform programme in the State the following person can be contacted:

Director (Technical),
Rajasthan Rajya Vidyut Prasaran Nigam Ltd.
Tel. No. 91-141-2740827
Fax. No. 91-141-2740794
E-mail : ppmrvpn@sancharnet.in

 The Names and addresses of the Chairman & Managing Directors of the new Companies are as under

 

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