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With power distribution reforms gained momentum soon after the application of EA 2003 (where it was believed to be coined in mid 90’s) , Indian power distribution utilities came along way since then. With, introduction of reforms and multiple cognitive steps undoubtedly the power distribution sector stands improved by leaps from the erstwhile levels. Having said that, it indeed still represents the weakest link of the power generation, transmission and distribution chain. With, India having most of the discoms run as state authorities the pedigree for operational efficiencies and achievement of targeted revenue remains a seldom site. Barring Gujarat and few discoms of southern states the degree of AT&C loss levels decline over the past decade remains elusive. For sure, states like Rajasthan , Madhya Pradesh and Maharashtra have depicted remarkable improvement but still owing to the large area of operations and the consumer handled thereof consistently tests the revenue cycle for the utilities.
What erstwhile was ignored, has now gained pinnacle importance by Government as the future of power sector at large depends upon better financial health and consistent operations of DISCOMS. To ensure this objective Government did attempted FRPs for struggling Discoms in 2013 which tanked due to lack of timely implementation, forcing yet another scheme to turnaround the fate of state owned distribution utilities which has earned the nomenclature as UDAY (Ujwal DISCOM Assurance Yojana). The scheme is touted as the next paladin to bail out the struggling Discoms, potentially could see them turn green in a time horizon of 3-4 years from 2015/16.
By meticulously examining the regulation, the latest trends governing the key fuel resources and deeply analysing the possible impacts on all the stakeholders, enincon llp attempts to blend the factual power tariff data and present a dossier which would enable clients with reliable insights and better understanding of the power tariff dynamics in the country.
In what could be termed as a landmark judgment the Honorable Supreme Court of India, on September 24, 2014 cancelled the allocation of 204 coal blocks amidst all the hullabaloo of possible negative repercussions of same. The term referred by the court was no less than a sharp reaction on to the process followed in the earlier allocations way back in 1993; terming it “illegal”. The rationales behind the allocation of the blocks were somewhere diluted and were perhaps not in line with the Coal Mines (Nationalization) Act 1973. This is clearly reflected in the observations of the court that as per provisions of the Coal Mines (Nationalization) Act 1973, coal mining is allowed only by a Central Government company, or a Government/private company having the specified end-use of iron & steel, power, cement, washing of coal, and syn-gas (coal to liquid).
ENINCON in it’s report “Power Procurement in India – Analyzing Long Term Opportunities” explores best Power Procurement Practices/Strategies for the power distribution utilities and open access customers of India. The report attempts to develop the future models and strategies for all the participants of the value chain. The models developed are based on thorough research and in-depth analysis of demand-supply scenario, load forecasting studies of discoms, detailed price comparison of long term and short term models, and all the other factors impacting power procurement’s viability and feasibility have been taken into consideration. The report also projects various scenarios for power procurement depending upon the intervention measure of policy makers/regulators.