Inputs on Reforming State Electicity Boards

Majority of the state electricity boards (SEBs) in India are in bankrupt status, have huge debts and do not have the funds to buy power.

With this post, we seek your specific inputs on how the SEBs should be reformed and fixed.

Most SEBs engage in subsidies due to vested political interests, have rampant corruption, are inefficient, have inflated claims of various costs on books, are subject to large scale theft of power and have transmission/distribution losses.

We look forward to your inputs! more  

View all 94 comments Below 94 comments
There should be a vigilance department in every state electricity boards which will submit periodical reports on the leakages,corrupt practices,mismanagement and every action leading to losses to the central vigilance committee.These are the main factors leading to losses.The state politicians pertaining to the ruling party play mischief and further the losses. more  
State subsidised electricity is very expensive to the consumer at present. The consumer should pay the regular bill and the state should reimburse the consumer by direct benefits transfer. I can post the specifics if the group is interested. more  
Dear Sir, The State Electricity Boards are facing shortage of funds, shortage of power, shortage of service, shortage of materials etc. In short, everything is short in the boards. We cannot find a one stop solution for the revival of these. 1. Divide the boards as Production, Transmission and Distribution companies. 2. The production section is to be further divided into conventional, hydro and non - conventional sections with separate management. Each with a manager. 3. The production, transmission and distribution systems should have separate managers and separate Bank Accounts with overdraft / loan facility. 4. Each section should make viable proposals for their respective operations and submit to the Banks for funds. The Margin Money can be provided as Central Assistance and guarantee should be given for the loans by the Centre. 5. The consumers are to be classified into two viz. Government Consumers and Non Government Consumers. All subsidised connections with 100% subsidies shalled be billed to the respective state governments and bills paid bi-monthly. The partly subsidised connections should be billed in the manner that the subsidy portion directly billed to the government and paid bi-monthly as usual. 6. All the arbitration / disputes should be entertained only after remitting the amount of the bill and refunds if any are to be paid with 12 percent interest from the date of remittance to the parties. 7. To avoid transmission loss, small diesel generator units are to be installed with 1 MW or so to supplement the peak hour load and unforseen power failures with automatic start and switch off. This system will improve the quality of power supplied and low volatage/high voltage protection. This can also be used to isolate the HT lines without affecting the distribution lines. This will also ensure 200% assured power. The power failure should be limited to 1 or 2 instances in an year making it easier for the production units to plan their working hours. (Now a days, the production and service industry function at full scale when the power is available making the lines over load and low voltage results. If the power is assured, the units will work as and when it is necessary making the load distributed throughout the day) 8. All buildings with roof available for installation of Solar Panels should be allowed to install panels and supply electricity to the grid when they don't need power ie. without storage batteries. The power so generated can be deducted from their power consumption and the bill is prepared for the balance. In case if there is excess, it can be prepared as negative bill and paid to the consumer accordingly. 9. Many electricity projects are stalled due to non receipt of environmental clearances. Make the environmental clearance simultaneous with the grant of Administrative sanction for the project. The land acquisition for the projects also should be in a red category with market value compensation paid and no arbitration or cases stand against the acquisition. 10. Private participation in production and distribution sectors are encouraged. The distribution is to be rest with the board itself. 11. Heavy penalties and impound of property should be enforced for power theft. 12. The complaint redressel system should be computerised and all linemen with GPS enabled phones report as and when they reach the spot and when they rectify it. 13. The OH lines should be withdrawn in all the cities and Under Ground cables installed in a phase by phase manner. (A levy of 10 to 15 percent on the energy charge may be applied on the Electricity Charge to raise the fund for the purpose) 14. Micro hydel projects and Geo Thermal projects should be installed with private partnership. There are many more to do. But I am sure, this would solve the major issues phased by the EBs. More over, I am ready to furnish any more information free of cost if required. Best wishes. Babu. more  
Better to privatise entire system, allow collection agents to recover dues from everyone. Irrespective of caste, creed etc collections to be improved for good of public. Dependency on State government should be brought down, self dependent system to be introduced. more  
Few reasons which I feel are given below: There should be an audit of 1. Power, Generated, Transmitted, Loss of power here. 2. Area wise (Locality wise or ERO wise) meters for Power supplied, Billed and the loss. 3. Compulsory collection of consumption charges from each and every household where meters are fixed. In some areas no charges are collected for the consumption or illegal connections with out meters. 4. Strict action on Corruption at all levels. more  
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