ias taj presentation

8/2/2019 IAS Taj Presentation

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Problems before Mahavitaran

Action Plan, Achievements & Future Plans Towards Reforms


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Slide 2

Problems before Mahavitaran (June 05)

1. Shortage of Power and Load Shedding of more than 4000 MW

(500MW Chandrapur under long Outage)

2. High Distribution Losses (31.14% in 04-05)

3. Large Amount of Outstanding Arrears (Rs. 8130.61 Cr.)

4. Highly Deteriorated Distribution Infrastructure

5. Large Pending Applications for Ag Connections (1.7 Lakhs Paid App)

6. Poor Response to Consumers

7. Employee Motivation

8. Financial Losses


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Slide 3

Action Plan to Resolve the Issues

MSEDCLs Mission Statement

10 Point Action Plan

Communication Plan

Organizational Changes


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Slide 4

1. Shortage of Power and Load Shedding of more than 4000MW

A) Load Management

Single Phasing : 7800 villages completed Load Relief : 960 MW

Gaothan feeder Separation : 90 feeders completed- Load Relief : 104 MW

Akshay Prakash Yojana : 4611 Villages, 960 MW

Energy Conservation : 4.5 Lakhs CFLs, 9 MW

Pune Zero Load Shedding Model

Total Load Managed: 2122 MW

Action Plan and Achievements in 2005-06

LOAD MANAGEMENT CAPACITY ADDITION PLAN

Load Curve for APY & Single Phasing


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Slide 5

Shortage of Power and Load Shedding of more than 4000MW Contd

B) Capacity Addition Availability Plan Up to FY 12 Plan of 19000 MW to meet deficit of 10000 MW in 5 years

MahaGenco 6178Central Sector 2753Interstate 591

RGPPL - 1768IPP 3973Ultra Mega PP 3840

2006-07 (MW):

Mahagenco 364, Tarapur - 158, NTPC (Vchal, Sipat, Kgaon) 316,Ghatghar 200, RGPPL 650: Total 1688 MW

Power Purchase at High Cost

Total: 19103 MW


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Slide 6

Future Plans (Load Management) Single Phasing Phase II - 4515 villages with expenditure of Rs. 270Cr. by March 2008

Gaothan Feeder Separation-2500 villages by 06-07 and balance by 2007-08

Energy Conservation-

CFL Launch in entire Maharashtra ( 3 Crores of CFLs to be distributed in entire

Maharashtra within next 1 year)

Capacitors-

LTLMS on 62666 DTCs, Fixed capacitors on 19900 DTCs

Total No. of villages 40687

Single Phasing Villages 14315

Feeder Separation Villages 10232

Askhay Prakash Villages 3757

Villages exempted from Load Shedding

for various reasons 12383

Abstract:

Shortage of Power and Load Shedding of more than 4000MW Contd


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2. High Distribution Losses (31.14% in 04-05)

Action Plan & Achievements

Energy accounting and fixing of responsibility at all levels

- 80% Feeders EA Completed, 50,000 DTCs Metered & EA Completed

Theft reduction drive including abetment & action against employees:

- FIR Against 22 Employees

- Disciplinary Action Against 389 Employees

- 110 Flying Squads Deployed- 26572 Thefts detected

Outsourcing of Meter Reading, Bill Distribution and Collection

Bhiwandi Franchisee Finalized

HVDS

Centre of Excellence - DRUM Project at Aurangabad : Tenders Invited

Commercial Intelligence Wing Set Up

LOSSES REDUCED BY 3.15% TO 27.9% IN 2005-06


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High Distribution Losses (contd)

Future Plans

Distribution Losses to be reduced to 19 % by 2008-09. [with 3% reduction each year]

Energy Audit of the remaining 2830 feeders to be completed during this year

Metering of 1.5 Lakh DTCs to be completed by March 2007

6 police stations to be set up

Bhiwandi to be handed over to Franchisee

High Loss feeders (Losses above 50%) to be franchised out (Feeder Franchisee Scheme)

High Loss DTCs to be franchised out (Micro Franchisee Scheme)

16.65 Lakh Ag connections to be metered by the year 2007-08.

20,000 HT consumers will get AMR

Ludhiana Pattern to be introduced on large scale.


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3. Low collection efficiency


After Company formation Monthly repatriation has increased from Rs. 932 Cr. to Rs.

1426 Cr.

Collection Efficiency has reached 95.32% in 2005-06.

Elimination of average billing: Normal Billing Increased to 84.2% in 2005-06 from

77.44% in 2004-05.

100 % disconnection of consumers with arrears above Rs 5000/-

Reduction of arrears: RCI Arrears reduced from Rs.1466 Cr. In FY 05 to Rs.1360 Cr in FY 06

E-billing (all Bills), Spot billing (20 Cities), ATM Cash Collection Centres (50), Drop Boxes, E-

payment Introduced.

Special PD Arrears Recovery Team Set Up: Rs. 8.28 Crs Recovered.


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Low collection efficiency (contd..)

Future Plans

Spot Billing and ATMs at all circles

Mobile Collection Centres

Increasing the scope of e-payment

Collection Efficiency to be increased by 2% every year


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Slide 11

4. Deteriorated Distribution Infrastructure

Action Plan & Achievements(Infrastructure Development Plan)

3 years Load Profile at SDO Level: Prepared for 580 Sub-

Divisions (Growth of 8870 MW)

3 years Infrastructure Plan to cater to the load:

DPR Prepared for 580 Subdivisions of Rs. 14524 Crores Plan includes 590 Sub Stn, 35 Switching Stn, 68751 DTC, 84531 KM HT

Lines, 23229 KM LT Lines

Project Management Consultants Appointed

Quality Control Department Set Up

Material Management Cell set Up

Rs. 5000 Cr. MOUs Signed with REC/ PFC, (15 projects approved by REC

worth Rs.2256 Cr

Received In-Principle Go-Ahead from MERC

Objectives


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Slide 12

Details of Proposed Major Works

Year

Sub-Station (Nos.) Switching Station

(Nos.)

DTC (Nos.)

Related

HT Lines(Km)

Related

HT Lines(Km)

RelatedLT Lines

(Km)33/11 KV 22/11 KV

11 / 0.4KV

22 / 0.4KV

22 KV 11 KV

06-07 57 4 3 6,562 553 569 8,180 2,404

07-08 250 16 16 28,532 2,406 2,474 35,565 10,453

08-09 248 15 16 28,311 2,387 2,455 35,288 10,372

Total 555 35 35 63,405 5,346 5,498 79,033 23,229

Year

HVDS Transformer

(Nos.)

Distribution Special Project

25 KVA 16 KVAHT Line(GFSS)

(Km)

LT Line(GFSS)

(Km)

DTC (Nos.)

63 kVA 100 kVA

06-07 4,313 2,728

24,000 4,0006,000

4,00007-08 18,753 11,862

08-09 18,608 11,769

Total 41,674 26,359 24,000 4,000 6,000 4,000

Deteriorated Distribution Infrastructure(Contd..)


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Slide 13

Financial Plan for 3 years - (FY 06-07 to FY 08-09)

Year Wise Outlay:

Year Capital Works R&M Works Total

FY06-07 774 1,027 1,801

FY07-08 4,343 2,000 6,343

FY08-09 4,343 2,037 6,380

Total 9,460 5,064 14,524

Rs. Cr.

Deteriorated Distribution Infrastructure(Contd..)


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Slide 14

5. Pending Applications for Ag connections

Achievements

Future Plan

Bring down the Ag. pending connections to one month in 3 years

Status of Pending Ag Pump Applications as on 31-03-2006

Total Applns Recd - 3,76,385Paid Pending Applns - 1,98,837Test Reports Received - 1,03,601

04-05 05-06 06-07

Connectionsreleased

Conn Released TargetConn Released (till

May 06)

81,294 79,466 1,11,927 12,095

Circle Wise Break Up


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Slide 15

6. Poor Response to Consumer

Action Plan & Achievements Implementation of MIS:

MIS Phase I Computers and CMS/FEMS software provided to 345 S/Dns.

Module for Store, EA, Finance, Consumer Systems etc.

MIS Phase II TCS Appointed, 15 Modules (including Asset Mgt,

GAD, HRMS, Training .etc.) envisaged

Communication Backbone with BSNL & Data Centre Started

Training to employees: Mandays Trained in 2005-06 increased to 36757 in comparison to 28226

in FY 2004-05.

Customer Facilitation Centres: 5 CFCs Set Up

Call Centres: 9 at Pune, Bhandup, Nagpur, Akola, Amravati, Kalyan, Ahmednagar, Nasik,

Kolhapur Set Up

SCADA: Being Implemented in 10 Cities (Amravati, Aurangabad, Kolhapur, Malegaon, Nagpur,

Nanded, Nashik, Pimpri-chinchwad, Sangli, Pune)

E-billing , Online payment , SEVAK ATM (50 Achieved in 2005-06), Bill junction / Bill desk

9 Consumer Grievance Redressal Forums Set Up


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Slide 16

Poor Consumer Response (contd..)

Future Plan

50 CFCs to be completed by August 06

12 Call centres to be set up at Municipal Corporations by March 07

67 more SEVAK ATMs to be installed by October 06

MIS Phase I Computers and CMS/FEMS software will be provided to additional220 S/Dns by March 2007

Integration of 6 modules of MIS Phase I will be completed by October 06

GIS Network Mapping

MIS Phase-II will be Completed in 1 Year.


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Slide 17

7. Employee Motivation

Communication Plan & Motivational Work Shop

Reward for Good Performance of all Employees

Performance Scorecard of All Officers on KPIs on Internet

Increasing Officers Exposure to Best Practices

Voluntary Uniform, Flag & Anthem

4 Mobile MDs Representatives

De-centralization & Regional Executive Directors Simplification of Procedures and Transparency

Quality Consciousness

Drive Against Corruption



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Summary of Major Achievements

Monthly repatriation increased from average Rs. 932 Crores to maximum Rs. 1426 Crores

Distribution Losses reduced by 3.14 % (31.14 % in 2004-05 to 28 % in 2005-06)

50,000 Urban DTCs metered and Energy Accounting started

5 years load Profile and Infrastructure Work Plan prepared for 580 Subdivisions of Rs.

14524 Crores for a three year period


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Summary of Major Achievements Contd

Effective Load Management through Akshay Prakash Yojana, Single Phasing,

GFSS,use of CFLs, capacitor installation on DTCs and at sub-stations being

implemented successfully for greater consumer satisfaction

Bhiwandi Franchisee Finalised

Employee motivation through training

Communication Plan implemented for Goodwill building up

Enhanced Consumer Response through CFCs, Call Centres, ATMs, E-billing etc.

Pune Zero Load Shedding Model


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Summary of Future Plans

3 years Infrastructure Plan to cater to the future load growth

Distribution Losses to be reduced to 19 % within 3 years

Energy Audit to be started on the remaining 1.5 Lakh DTCsand 2830 feeders by March 2007

Collection Efficiency to be increased to 100% within 3 years

Normal Billing Percentage to be 100% in one year


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Summary of Future Plans (Contd..)

Load Management and Capacity Addition so as to have zero

Load Shedding by 2009-10

Micro franchisee and Feeder Franchisee Schemes

Use of SCADA, Call Centres, CFCs etc. in all Municipal

Corporation Areas

16.5 Lakh Ag Consumers to be metered by 2007-08

Bring down the Ag pending Connections to 1 month in 3 years

I i h G f M h h


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Slide 22

Issues with Govt. of Maharashtra

Promised Conversion of Govt. Debt of Rs. 2742 Cr. Not Cleared.

Experience of Other States

Appointment of Director (Finance), Director (HRD)

Valuation/ New Balance Sheet/ New P&L Account

Establishing dedicated police stations and special courts-Appointments of SPs ondeputation

M/s. Mula Pravara Electric Co-op Society recovery of arrears and other pending

issues

Payment of Arrears of State Govt. Dept.


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Slide 23

Major Performance Indicators

Description 2004-05 2005-06Revenues (Rs. Cr.) 14,930 14,058 #

Power Purchase Cost (Rs. Cr.) 12,942 11,787 #

Surplus/ Deficit [Accrual], (Rs. Cr.) -1137 -599 * #Distribution Losses (%) 31.14 27.98

AT&C Losses (%) Mahavitaran

[Effect of Free Power]

26.93 26.53

Average Collection Per Month (Rs. Cr.) 999.36 1113.93

RCI Arrears (Rs. Cr.) 31st Mar 1466 1360

DTC Failure Rate (%) 18.52 16.14

Capital Investment (Rs. Cr.) 511.27 1277.43Cash Losses (Rs. Cr.) 998 150 (Projected)

SCADA Progress Nil 10 Cities

Call Centers 2 3 Operational

Franchisee Nil 1 (Bhiwandi)FinalizedSpot Billing Nil 20 Cities

No. of Theft Cases Detected 16337 26572

FY 2005-06: Genco: Profit Rs. 256 Cr, Transco: Profit Rs. 330 Cr. Net -13 Cr

# Values for period 05/06/2005 to 31/03/2006

Previous Years


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Slide 24

Further Ideas . . . . . . . . . . . . . . . .

?


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Thank You


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Slide 26

(Rs. Crore)

ARR & Tariff Petition Summary

Total Revenue Expenditure

S.no. Particulars

Previous

Year (FY2004-05)

Current

Year (FY2005-06)

% Inc. overFY 2004-05 Ensuing Year(FY 2006-07) % Inc over FY2005-06

1 Power Purchase Expenses 10706.91 12878.41 20.28% 16335.13 27%

2 Operation & Maintenance Expenses 1747.64 1865.48 6.74% 2045.66 10%

2.1 Employee Expenses 1360.53 1456.35 7.04% 1564.64 7%

2.2 Administration & General Expenses 121.03 127.00 4.94% 133.35 5%

2.3 Repair & Maintenance Expenses 266.08 282.12 6.03% 347.66 23%

3

Depreciation, including advance against depreciation

511.43 540.72 5.73% 599.18

11%

4 Interest on Long-term Loan Capital 348.97 180.88 -48.17% 278.65 54%

5

Other Interest & Finance Charges incl. Interest on working

capital & consumer security deposits123.69 260.72 110.79% 348.39

34%

6 Bad Debts Written off 209.88 219.95 4.80% 238.08 8%

7 Other Expenses (details given separately) 130.20 122.70 -5.76% 137.40 12%

8 Income Tax 0.00 108.50 160.89 48%

9 Transmission Charges paid to Transmission Licensee 1533.89 1715.66 11.85% 1868.34 9%

10 Contribution to contingency reserves 44.83 49.65 11%

11 Total Revenue Expenditure 15312.60 17937.84 17.14% 22061.38 23%

MSEDCL ARR & R G


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Slide 27

MSEDCL - ARR & Revenue Gap

Rs. Cr.

S.No Particulars FY 2004-05 FY 2005-06 FY 2006-07 Total

1 Aggregate Rev. Reqmt. 14505 16910 22490 53905

2 Revenue with Existing Tariff 13992 15509 18942 484433 Revenue Gap 513 1401 3548 5462

P d T iff


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Slide 28

Proposed Tariffs

Category

ExistingFixed

Charges

(Rs)

ExistingEnergy

Charges(Rs/ Unit)

ProposedFixed

Charges

(Rs)

ProposedEnergy

Charges(Rs/ Unit)

% Increase

Domestic

(0-30 Units)20 221 25 265 28.8%

Domestic(31-300 Units)

40 386 60 480 28.8%

Industrial LT

(0-1000 Units)60 376 100 480 28.8%

Commercial

(0-100 Units)100 386 100 500 28.8%

Agriculture (Per Hp) 213 213 0%

Others 28.8%

N d f t iff i


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Slide 29

Need for tariff increase

Power Purchase Cost has increased from Rs 10707 Crore in FY 04

to Rs 16335 Crore in FY 07

The average cost of supply (ACOS) has increased from Rs. 3.07

per kWh to Rs. 4.22 per kWh.

The average increase in tariff works out to 28.8%

Ci l i Di t ib ti l Y Y C i


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Slide 30

Circle wise Distribution loss YoY Comparison

Circle 2004-05 2005-06

Wardha 14.0% 11.06%

Bhandara 38.0% 34.79%

Chandrapur 13.0% 12.09%

Gadchiroli 38.9% 34.67%

Ahmadnagar 37.7% 36.39%

Nashik ( R ) 39.4% 38.75%

Nashik ( U ) 22.5% 17.18%

Dhule 44.3% 42.18%

Jalgaon 48.6% 38.76%

Parbhani 57.3% 52.47%

Aurangabad [R] 42.5% 37.88%

Jalana 36.1% 32.97%

Aurangabad [U] 35.3% 31.13%

Buldhana 34.7% 30.42%Akola 39.9% 37.39%

Amrawati 39.6% 34.85%

Yeotmal 43.0% 42.41%

Solapur 36.2% 39.93%

Kolhapur 17.9% 14.92%

Sangli 21.7% 17.79%

Circle 2004-05 2005-06

Satara 19.3% 20.09%

Pen 10.2% 9.5%

Kalyan (U) 34.7% 25.09%

Kalyan 31.6% 31.5%

Vasai 19.2% 17.51%

Osmanabad 52.5% 48.14%

Nanded 59.7% 55.8%

Beed 60.4% 59.07%

Latur 53.7% 46.74%

Ratnagiri 15.9% 16.92%

Sindhudurga 27.4% 29.46%

Ganeshkhind 15.2% 12.68%

Rastapeth 17.6% 17.14%

Pune [R] 30.9% 27.51%

Nagpur [U] 33.8% 31.14%

Nagpur (R) 20.4% 18.98%

Washi 12.4% 7.89%

Bhandup 21.2% 21.17%

Bhiwandi 37.9% 44.53%



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Slide 31


Description 2004-05 2005-06Distribution Losses (%) 31.14 27.98

Average Collection Per Month(Rs. Cr.)

999.36 1113.93

RCI Arrears (Rs. Cr.) 31st Mar 1466 1360

DTC Failure Rate (%) 18.52 16.14Capital Investment onDistribution Infrastructure

511.27 1277.43

Cash Losses (Rs. Cr.) 537 900 (Projected)

SCADA Progress Nil 10 Cities

Call Centers 2 3 OperationalFranchisee Nil 1 (Bhiwandi) Finalized

Spot Billing Nil 20 Cities

Theft Cases Detected 16337 Cases 26572 Cases

Demand Supply Gap (In MW)


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Slide 32

Demand Supply Gap (In MW)Instances of Peak Demand

Financial Year 2004-05 2005-06

Date 28th March 28th December

Demand (MW) 12749 14061

Total Availability (MW) 9704 9756

1. MahaGenco (MW) 6899 7238

2. Central Sector Share (MW) 2317 2096

3. Traders (MW) 377 443

4. Tata Power (MW) 111 79

Gap (MW) 3045 4205

L d M t


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Slide 33

Load Management

Description 2005-06

No. of APY villages4611 Villages

960 MW

Special Gaothan feeder separation 90 Feeders

104 MW

Single Phasing Scheme7800Villages

960 MW

DSM/ Energy Conservation4.5 Lakh

9 MW

Total Load Managed 2122 MW

P P h t Hi h C t M thl 2005 06


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Slide 34

Power Purchase at High Cost Monthly 2005-06

UTILITY UNITS Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY 05-06

TRADERS

MUs 219.6 378.2 196.8 213.1 198.2 223.8 298.1 208.2 345.2 446.3 243.5 323.0 3294.0

CostRs.Cr

67.3 122.1 64.4 66.6 61.6 68.9 106.5 72.6 127.6 163.4 94.6 112.4 1128.2

KAWASLIQUID

MUs 207.1 152.5 24.8 0.3 0.0 0.0 0.0 0.0 77.7 142.3 243.2 129.9 977.8

Cost

Rs.Cr 135.9 93.8 14.8 0.2 0.0 0.0 0.0 0.0 56.2 101.4 179.4 94.8 676.3

TPC

MUs 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 108.3 41.0 7.7 0.0 156.9

CostRs.Cr

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 47.3 17.9 3.3 0.0 68.6

CPP

MUs 13.5 11.9 8.3 6.5 14.8 18.0 18.0 19.0 22.0 31.0 34.0 35.0 232.1

CostRs.Cr 3.5 3.1 2.2 1.7 3.9 4.7 5.8 5.9 6.0 8.9 11.3 12.0 68.8

TOTAL

MUs 440.2 542.7 229.9 220.0 213.0 241.8 316.1 227.2 553.2 660.6 528.3 487.8 4660.8

CostRs.Cr

206.7 219.0 81.3 68.5 65.5 73.6 112.3 78.5 237.1 291.7 288.5 219.3 1941.9

MUS, Average Cost, Total Cost

Communication Plan


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Slide 61

Communication Plan

Communication Strategy

Communication Focused towards internal EmployeesCommunication of reforms to consumers

Means of CommunicationWorkshops with field staff and with unions

Workshops conducted by Unions for members

Staff Meetings at Division/Circle LevelHouse Journal (E-magazine)Maha Vitaran Veej Varta

Video message on Ten Point Program

Articles in Newspapers

Officers KKPI


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Slide 62

Officers KKPI

S N KKPI Weightage HOD

1 Percentage DTC having lossesBelow 15% ( U ) 05

CE (IR)Below 25% ( R )

2 Percentage Feeders having losses Below 15% ( U ) 05 CE (IR)Below 25% ( R )

3 Sub-division / Division / Circle/Zone losses 05 CE (IR)

4 Repatriation against target 10 CE (Comm)

5 Commercial efficiency : Rs. collected/ input units 10 CE (Comm)

6 Normal billing percentage 05 CE (Comm)

7 FIR lodged/Compounding cases 10 CE (Comm)

8 Arrears in Days:

RCI Live 03 CE (Comm)

Others Live 02

RCI PD 05

9 Percentage DTC failure against target 05 CE (LM)

10 SAIFI / SAIDI 05 CE (LM)

11 Reduction in Accidents 05 CE (LM)

12 Pending RCI connections beyond SOP 05 CE (Dist)

13 Annual plan progressPhysical 05 CE (IS)

Financial 05

14 Capacitors: MVAR in service out of MVAR installed 05 CE (Dist)

15 Training (mandays) 05 CE (IR)

Total : 100

Dri e Against Corr ption


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Slide 63

Drive Against Corruption

Drive including abetment & action against employees:

- FIR Against 22 Employees

- Disciplinary Action Against 389 Employees

P L d Sh ddi M d l


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Slide 69

Pune Load Shedding Model

Total Load Required for Pune Urban Circles: 751 MW

Non Sheddable Load : 393 MW

Sheddable Load : 358 MW

CPP Generation : 90 MW (From 28 Consumers)CPP Generators to run : 4 to 6 Hrs. / Day

Loading on Consumer : 42 Ps. / Unit

except (0 to 300 Units Consumption)

Major Performance Indicators (Previous Years)


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Major Performance Indicators (Previous Years)

Description 2002-03 2003-04 2004-05 2005-06

Revenues (Rs. Cr.) 12,437 13,225 14,930 14,058 #

Power Purchase Cost (Rs. Cr.) 12,942 11,787 #

Surplus/ Deficit [Accrual], (Rs. Cr.) -1137 -599 #

Distribution Losses (%) 33.24 33.12 31.14 27.98

AT&C Losses (%) Mahavitan 44.25 38.95 26.93 26.53

Average Collection Per Month (Rs. Cr.) 999.36 1113.93

RCI Arrears (Rs. Cr.) 31st

Mar 1666 1845 1466 1360DTC Failure Rate (%) 18.52 16.14

Capital Investment (Rs. Cr.) 511.27 1277.43Cash Losses (Rs. Cr.) 998 150

(Projected)SCADA Progress Nil Nil Nil 10 CitiesCall Centers Nil Nil 2 3 Operational

Franchisee Nil Nil Nil 1 (Bhiwandi)Finalized

Spot Billing Nil Nil Nil 20 Cities

No. of Theft Cases Detected 16337 26572

# Values for period 05/06/2005 to 31/03/2006

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