First ten states in the ratings of technical and financial performance

Inference on the rating of internal factors

Only performance up to December 2005 is taken into account for evaluation. From the above-sorted tabulations it is crystal clear that the unbundling process has no bearing on the improvement of technical and financial performance of power sector. On the contrary if we look at the ranks obtained for states, which were leading in the imperialist driven power sector reforms, we can visualise their pathetic performance. Even after getting a lot of financial support from the state government in the form of upfront subsidy, support to restructuring, transitional support etc these states could not come above the bundled and public sector entities. There ranks out of the 29 states, in the ratings of internal factors are given below:

Orissa and Delhi were two states where distribution has privatized. Orissa ranks 17^th and Delhi ranks 6^th in the technical performance of distribution. Ranks from 1^st to 4^th goes to bundled entities as shown above.

AP, Gujarat and Delhi

Icra& Crisil ranked AP, Gujarat & Delhi as 1^st, 2nd and 3^rd respectively considering the internal and external factors. Delhi’s rank raised eye brows of both Delhiyts and power sector watchers. Frequent and prolonged interruptions, increasing bribery in the privatized distribution, uncontrolled theft of electricity are in alarming proportions at capital city which the consumers are well aware of .AT&C loss is still at the height of 48.1%.The cumulative tariff hike between 2002 and 2006 is 57.16% and the billing impact is an increase of 97.2% when compared to 2000.Subsidy provided by the state government during the last four years reached 3452 Cr., still leaving aside a revenue gap of 320 Cr. in the latest tariff order. Out of the total of 1700.27 Cr of rupees as outstanding dues of power utilities in Northern zone as on 31-3-2006, 1607Cr. of rupees belongs to Delhi power sector. So only the magic wand of Icra &Crisil in the form of evaluation criteria can bring Delhi to such and envying position.

APSEB was one of the best Electricity Boards in the country right from the period of Tata Rao, the pioneer in the field. It was continuing as a very good EB while it was unbundling in 1999. Between 1990 and 1994, APSEB was minting profit with out subsidy. The load curve of the system is healthy to contribute bettering financial performance. But during the period under evaluation, the states’ exchequer was forced to release nearly 1500 Cr. as subsidy to power sector. No one can find any contribution of unbundling in the rank obtained to Andhra.

Similar to AP GSEB also was a healthy EB. Its load curve is almost flat which helps a lot in the better technical and financial performance. During the period under evaluation, GSEB was a single bundled entity. Even after re-structuring all the companies are functioning under the umbrella of GSEB. So there is no influence of power sector reforms such as unbundling in the rank achieved by Gujarat in the ratings.