The performance ratings of state power sector valued and prepared by Icra& Crisil was announced recently with unprecedented tom-toming. A function was also organized by Ministry of power at Imperial Hotel, Delhi to honor and to distribute prizes to the 1^st ,2^nd and 3^rd rank holders by not less than the Hon. Power Minister Sri.Susil Kumar Shinde. Among other things he proclaimed in the function that the rank holders will be prized with cores of rupees in future. This ranking will be the basis of future fiscal allocations including budgetary support and incentive from APDRP. Shinde cautioned in the speech. This type of performance rating evaluation is also going to be a tool in the hands of the central government in future to tame the revolted state governments if any and to bring them in line with the neo-liberal policies.

Parameters for evaluation

It can be well learned by going thro’ the parameters used and weightages given that the entire performance rating model is designed to promote the neo-liberal policies including unbundling of State Electricity Boards and it’s privatisation. Eyeing this, 45.25% of the marks are set apart for external factors of power utility including historical parameters such as (1)state government related, (2)regulatory process, (3)sustainability of revenue model and (4)creation of a competitive environment. Only 54.75% of the marks are earmarked for internal factors of power utility/ EB such as (1)technical performance (business risk analysis)(2)financial performance ( financial risk analysis)(3)other aspects related to IT , not related to IT and business plan(4) progress in achieving commercial viability. So to evaluate the actual performance of state electricity Board/ state power sector, only the marks awarded to the internal factors need be taken into account. It can be very well pointed that marks are distributed for internal factors too with an intension to cover up the lacunae of those states which had unbundled and privatized the power sector. For example, redressal of consumers’ grievance is an important factor as government, consumers and employees are the three stake holders in this industry. But only 1.125 % marks are set apart for this. For gearing level which involves the total debt and the net worth after adjustment, only 1.875% of marks are allotted. The evaluation criteria of financial performance hides the support from the state government in the form of structural adjustment support, transition support etc. These factors are included in the government related parameters as positive aspects and 2.625%, 1.5% of marks are allocated respectively. The burden of all the state governments combined together towards subsidy to power sector increased from 10400 Cr. to 11000 Cr. of rupees during the last fiscal year contrary to the propagandists of neo-liberal policies.

Internal factors de-husked

States which acquired the first five ranks under deferent aspects of Internal factors in the ratings of Icra & Crisil are given below:

· Technical performance (business risk) • Distribution performance

1. Himachal Pradesh(HP) - bundled entity 1. HP - bundled entity

2. Andra Pradesh(AP) 2. Goa - bundled entity

3. Tamil nadu(TN) -bundled entity 3. TN - bundled entity

4. Delhi 4. Kerala - bundled entity

5. Kerala - bundled entity 5. AP

· Financial performance • Commercial viability

1. AP 1. Goa - bundled entity

2. Goa - bundled entity 2. Tripura - bundled entity

3. Gujarat - bundled entity during 3. WestBengal - bundled entity

the period of evaluation 4. Sikkim - bundled entity

4. Maharastra - bundled entity 5.Maharastra - bundled entity during

5. Karnataka the period of evaluation

· Other factors related with and not related with IT, business plan

1. AP

2. Gujarat - bundled entity during the period of evaluation

3. Delhi

4. Maharastra - bundled entity during the period of evaluation

5. Karnataka