3. POWER REFORMS
Orissa was the first State in the country to reform
the Power sector.
The Orissa Electricity Reforms Act 1995 came into
force with effect from 1st April'1996. An
independent transparent , Orissa Electricity
Regulatory.
4. The restructuring exercise has its origins in a
$350-million World Bank power sector loan
negotiated by the Government of Orissa and
counter-guaranteed by the Government of
India. The loan came with stringent
conditions. These included splitting up of
the Orissa State Electricity Board (OSEB) into
units handling generation, transmission and
distribution. Each of them was to undergo a
process of corporatisation, commercialisation
and eventual privatisation.
5. OERC was established in April'1996 in order to
look after the regulation measures and also to
promote accountability in the sector and to
encourage private sector investment.
Thermal power plants were transferred to
Odisha Power Generation Corporation (OPGC).
Orissa Hydro Power Corporation (OHPC) owned
and operated all hydro power generation stations
in the State from 1st April'1996.
7. The Grid Corporation of Orissa Limited (GRIDCO)
was entrusted with the responsibility of
Transmission and Distribution Systems.
April'1999, the distribution business of GRIDCO
was privatised.
GRIDCO was privatised when GRIDCO
disinvested 51% of its share, to Private Investors
with financial and technical capabilities.
8. By virtue of Power Sector reform in Orissa,
NESCO,WESCO & SOUTHCO became a
subsidiary of BSES Limited, Mumbai on 1st April
1999 by acquisition of 51% of the shareholding of
the Company by BSES Limited.
NESCO, WESCO,SOUTHCO and CESCO was
incorporated on 19.11.1997 under the Companies
Act, 1956. It has taken over the Business of
“Distribution and Retail Supply of Electricity” in
the North Eastern Zone, Western , Southern &
Central Zone of Orissa , GRIDCO.
10. CESU - Central Electricity Supply Utility of Orissa
the Electricity Act,2003 has formulated a Scheme
named “ Central Electricity Supply Utility of Odisha
( Operation and Management ) Scheme , 2006 for
operation and management of the Utility. The said
Scheme shall remain in force for a period of 2 years
which may be extended by the Commission in public
interest.
Under the provisions of said Scheme, all assets,
liabilities, rights, proceedings and manpower as
well as the license for distribution and supply of
electricity held by CESCO.
11. The scheme was amended and extended upto
07.09.2016. Under the said Scheme, the CESU has
to comply with the provisions of the Electricity
Act, 2003 and other relevant statutory provisions
and license conditions with regard to distribution
of electricity in its area of supply.
12. OUTCOME
Odisha was the first state to privatise power
sector in the country, by segregating power
generation, trading and distribution business
way back in 1996. Out of four power
distribution companies (discoms), three were
managed by Reliance Infra while the fourth
one, Central Electricity Supply Utility (CESU)
is currently run by Odisha Electricity
Regulatory Commission (OERC).
13. The three discoms - managed by R Infra.
Licenses were revoked for an unsatisfactory
performance. MD, CEOs of the discoms removed.
The State-owned Grid Corporation of
Orisssa(Gridco), which would now manage the
three discoms is under deep financial crisis. The
four power distribution companies owe Rs
4,461.92 crore to Gridco for bulk power supply
with CESU alone accounting for a due of Rs
1,856.80 crore. The three discoms run by Reliance
Infrastructure have outstanding dues worth
Rs2600 crore.