Problems before Mahavitaran Action Plan, Achievements

1
Problems before Mahavitaran Action Plan,
Achievements Future Plans Towards
Reforms

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

3
Action Plan to Resolve the Issues

• MSEDCLs Mission Statement
• 10 Point Action Plan
• Communication Plan
• Organizational Changes

4

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

LOAD MANAGEMENT
CAPACITY ADDITION PLAN

• 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

Load Curve for APY Single Phasing
5
Shortage of Power and Load Shedding of more than
4000 MW Contd

• B) Capacity Addition Availability Plan Up to FY
  12
• Plan of 19000 MW to meet deficit of 10000 MW in 5
  years
• MahaGenco 6178
• Central Sector 2753
• Interstate 591
• RGPPL - 1768
• IPP 3973
• Ultra 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
6
Shortage of Power and Load Shedding of more than
4000 MW Contd

• 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

Abstract
7
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
8
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.

9
Low collection efficiency

• Action Plan Achievements
• 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.

10
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

11
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
12
Details of Proposed Major Works
Deteriorated Distribution Infrastructure
(Contd..)
Year Sub-Station (Nos.) Sub-Station (Nos.) Switching Station (Nos.) DTC (Nos.) DTC (Nos.) Related HT Lines (Km) Related HT Lines (Km) Related LT Lines(Km)
Year 33/11 KV 22/11 KV Switching Station (Nos.) 11 / 0.4 KV 22 / 0.4 KV 22 KV 11 KV Related LT Lines(Km)
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.) HVDS Transformer (Nos.) Distribution Special Project Distribution Special Project Distribution Special Project Distribution Special Project
Year 25 KVA 16 KVA HT Line (GFSS)(Km) LT Line (GFSS)(Km) DTC (Nos.) DTC (Nos.)
Year 25 KVA 16 KVA HT Line (GFSS)(Km) LT Line (GFSS)(Km) 63 kVA 100 kVA
06-07 4,313 2,728 24,000 4,000 6,000 4,000
07-08 18,753 11,862 24,000 4,000 6,000 4,000
08-09 18,608 11,769 24,000 4,000 6,000 4,000
Total 41,674 26,359 24,000 4,000 6,000 4,000
13
Financial Plan for 3 years - (FY 06-07 to FY
08-09)
Deteriorated Distribution Infrastructure
(Contd..)

• Year Wise Outlay

Rs. Cr.
Year Capital Works RM 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
14
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 -
3,76,385 Paid Pending Applns -
1,98,837 Test Reports Received - 1,03,601
04-05 05-06 06-07 06-07
Connections released Conn Released Conn Released Target Conn Released (till May 06)
81,294 79,466 79,466 1,11,927 12,095
Circle Wise Break Up
15
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

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 additional 220 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.

17
7. Employee Motivation
Action Plan Achievements

• 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

18
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

19
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

20
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 DTCs and 2830 feeders by March 2007
• Collection Efficiency to be increased to 100
  within 3 years
• Normal Billing Percentage to be 100 in one year

21
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

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 PL Account
• Establishing dedicated police stations and
  special courts- Appointments of SPs on
  deputation
• M/s. Mula Pravara Electric Co-op Society
  recovery of arrears and other pending issues
• Payment of Arrears of State Govt. Dept.

23
Major Performance Indicators
Previous Years
Description 2004-05 2005-06
Revenues (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
ATC 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 1277.43
Cash Losses (Rs. Cr.) 998 150 (Projected)
SCADA Progress Nil 10 Cities
Call Centers 2 3 Operational
Franchisee Nil 1 (Bhiwandi) Finalized
Spot 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

24
Further Ideas . . . . . . . . . . . . . . . .
?
25
Thank You
26
ARR Tariff Petition Summary Total Revenue
Expenditure
(Rs. Crore)
S.no. Particulars Previous Year (FY 2004-05) Current Year (FY 2005-06) Inc. over FY 2004-05 Ensuing Year (FY 2006-07) Inc over FY 2005-06
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 deposits 123.69 260.72 110.79 348.39 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
27
MSEDCL - ARR Revenue Gap
Rs. Cr.
28
Proposed Tariffs
Category Existing Fixed Charges (Rs) Existing Energy Charges (Rs/ Unit) Proposed Fixed Charges (Rs) Proposed Energy 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
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

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
31
Major Performance Indicators
Description 2004-05 2005-06
Distribution 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 16.14
Capital Investment on Distribution Infrastructure 511.27 1277.43
Cash Losses (Rs. Cr.) 537 900 (Projected)
SCADA Progress Nil 10 Cities
Call Centers 2 3 Operational
Franchisee Nil 1 (Bhiwandi) Finalized
Spot Billing Nil 20 Cities
Theft Cases Detected 16337 Cases 26572 Cases
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
33
Load Management
Description 2005-06
No. of APY villages 4611 Villages 960 MW
Special Gaothan feeder separation 90 Feeders 104 MW
Single Phasing Scheme 7800Villages 960 MW
DSM/ Energy Conservation 4.5 Lakh 9 MW
Total Load Managed 2122 MW
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
TRADERS Cost Rs.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
KAWAS LIQUID 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
KAWAS LIQUID 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
TPC Cost Rs.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
CPP Cost Rs.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
TOTAL Cost Rs.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
35
MSEDCLS MISSION STATEMENT

1. We, as a professional company, rededicate
   ourselves to serve all our customers by extending
   reliable and quality power supply at reasonable
   and competitive tariffs so as to boost
   agricultural, industrial and overall economic
   development of Maharashtra.
2. We commit to Honesty, Integrity and Transparency
   in actions to achieve higher standards of
   Consumer Satisfaction.
3. We aim at achieving technological excellence and
   financial turnaround for the overall benefit of
   the customers.

36
MSEDCLS MISSION STATEMENT cont.

1. We will strive hard for system improvement and
   stress upon preventive maintenance.
2. We will ruthlessly curb the theft of electricity.
3. We will encourage and support energy savings
   activities and Demand Side Management thereby
   optimizing the use of electricity.
4. We will fulfill our commitment to society by
   improving quality of life.

37
10 Point Action Plan

• Preventive maintenance
• Distribution network planning
• Consumer Grievances Redressal Systems
• Distribution system loss reduction
• Improvement in Collection efficiency
• Circles to act as profit centers
• Efficient use of Technology
• Improved services to Ag. Consumers
• Improving working conditions of employees
• Demand Side Management

38
Communication Plan

• Communication Strategy
• Communication Focused towards internal Employees
• Communication of reforms to consumers
• Means of Communication
• Workshops with field staff and with unions
• Workshops conducted by Unions for members
• Staff Meetings at Division/Circle Level
• House Journal (E-magazine) Maha Vitaran Veej
  Varta
• Video message on Ten Point Program
• Articles in Newspapers

39
Organizational Changes

• Four S.Es nominated as M.Ds representatives for
  monitoring various activities of the MSEDCL in
  the field
• Posts of area wise Executive Directors created
  and filled in for proper monitoring.
• Formation of Quality control department to ensure
  purchase of best quality material.
• Formation of Material specifications Cell

40
Objectives of Infrastructure Plan(3 Years)

• Infrastructure to meet anticipated increase in
  load of 8870 MW
• Distribution Losses to be reduced to 19 by
  08-09
• HTLT Ratio to be improved from 12.5 to 11.5
• Reduce loading of the Distribution Transformers
  to 80 in the Horizon year from the present level
  ranging from 100 to 150
• Use of SCADA, Call Centers, Consumer Facility
  Centers in all Municipal Corporation areas
• Bring down the DTC failure rate from 16.14 in
  FY 2005-06 to
• - Urban- 5
• - Rural- 7
• Bring down the Ag. pending connections to one
  month in three years
• Meet the Standard Of Performance given by MERC
• Power Factor to be brought to 0.90, 0.95 and
  0.99 in Rural, Urban and Industrial areas
  respectively

41
PMC Appointed
Managing Director
Chief Engineer (IP)
Main PMC (The Louis Berger Group Inc)
Unison Bedmutha
M/s CES
Feedback
The Louis Berger Group Inc.
Pune Zone Nagpur zone (U R)
Bhandup Zone Nashik Zone Akola Zone
Aurangabad Zone Latur Zone
Kalyan Zone Ratnagiri Zone Kolhapur Zone
Zonal PMC
Turnkey Contracts
42
Main PMC The Louis Berger Group Inc.
Among the Top 10 A/E (Consulting Engineering)
Firm in the World as per annual ENR Rankings.
Annual Turnover of around US 800 Million
Presence across the Globe on all four
Continents Office in India for over 15 years
Projects in Maharashtra since last 7 years. Have
executed numerous Projects in India in the
infrastructure Sector.
43
Main PMC Project Management/Electricity Sector
Experience
1 Project Management Services of Rajasthan Urban Development Asian Development Bank
2 Project Management Services of Karnataka Urban Development Asian Development Bank
3 Owners Consultant for Mumbai Metro BOT Project - MMRDA
4 Independent Engineer-Tada Nellore BOT project, Tamil nadu
5 Project Management Services of Madhya Pradesh Urban Development Asian Development Bank
6 Operations and Maintenance Improvement Project - 2nd Year Modification UNITED STATES
7 Trans-Caucus Embassy Renovation Projects (JG1044), KAZAKHSTAN
8 Stability Pact Electricity Transmission Planning, Investment and Management, CROATIA
9 GenPower's Nova Scotia to New York Project (CE2077), CANADA, UNITED STATES
10 Program Management Support Services for Incheon International Airport Phase II Expansion, Seoul, SOUTH KOREA
11 Independent Certification Engineer for Bangkok Metro Company Limited, Bangkok, THAILAND
12 Operations and Maintenance Improvement Project - 2nd Year Modification UNITED STATES
13 Trans-Caucus Embassy Renovation Projects, KAZAKHSTAN
14 Stability Pact Electricity Transmission Planning, Investment and Management, CROATIA
15 GenPower's Nova Scotia to New York Project, CANADA, UNITED STATES
44
Representative Main PMC Team
Team Leader
Robert Berlin
Managed Complex and Integrated projects of State
wide Urban Infrastructure Improvements in
Rajasthan, Karnataka.
Project Coordinator/Chief Electrical Engineer
Institutional Specialist
Financial Budget Specialist
Milan Dave
MIS Specialist
20 years of Project Planning experience in Asia,
Europe and N. America.
Training Specialist
Sanjay Saxena/Madhusudan Sharma
Finance and cost accountants. Books Authored and
Published on MIS , developed MIS for DFID, US
Aid, Reuters, HK Bank. Extensive MIS experience
Public Outreach/Communications
45
Quality Control Labs

• 6 Quality Control Labs Setup
• State of the Art Testing equipments
• Kolhapur, Pune, Bhandup, Nasik, Aurangabad
  Nagpur

46
Power Purhase at High Cost Monthly 2005-06
Source Units (MUs) Amount (Rs. Cr.) Average Cost (Rs./ Unit)
TRADERS 3294 1128.2 3.43
KAWAS LIQUID 977.8 676.3 6.92
TPC 156.9 68.6 4.37
CPP 232.1 68.8 2.96
TOTAL 4660.8 1941.9 4.17
47
Demand Supply Gap for MSEDCL
PEAK DEFICIT IN MW
3045
2042
1016
2421
1822
4622
  FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006
Demand 10473 10119 11425 11357 12749 13159
Supply 8651 9103 9004 9315 9704 8537
48
High Distribution Losses
Item 2003-04 2004-05
Energy Input (MUs) 65,928 67,289
Energy Sales (MUs) 40,744 43,550
TD Losses () 38.20 35.28
Distribution Losses () 33.12 31.14
49
Theft Cases Detected
In Rs lakhs
50
Low Collection Efficiency
Item 2004-05 2005-06
Collection Efficiency () all categories 99.66 95.32
Collection Efficiency () without agriculture 98.66 98.87
Collection all Categories with Adjustment including Ag Subsidy 106.11 102.01
51
Category Wise Collection Efficiency ()
Category 2003-04 2004-05 2005-06
HT IND 99.77 100.86 99.72
Residential 93.98 97.06 99.34
Commercial 94.90 95.54 97.84
LT IP 97.61 97.98 98.75
PWW 91.66 99.37 91.33
Street Ltg 64.01 81.43 85.76
Ag 50.21 70.32 22.05
52
MAHARASHTRA STATE ELECTRICITY DISTRIBUTION
COMPANY LIMITED
Category Wise Arrears (All Zones)
(Rs.in crores)
Collection Efficiency
53
Deteriorated Infrastructure

• Grossly Overloaded system.
• HT LT Ratio of 12.5 - leading to poor voltage
  regulation
• DTC Failure Rate of 18.52
• Minimal Upgradations in Infrastructure since
  last 15 Years.
• High rate of interruptions on LT HT sides,
• eg. In Aurangabad,
• SAIDI 1440 minutes, SAIFI 91 occasions,,CAIDI16
  minutes/ occasion

54
Poor Consumer Response

• No separate Consumer care centers
• No Call Center for Complaints
• No system for Feedback to consumers
• Huge time taken for supply restoration against
  complaints
• No system for tracking status of consumer
  complaints
• High level of consumer dissatisfaction

55
Financial Loss

• Cash Deficit in FY 2004-05 Rs. 998 Crores

Revenue Gap
Sl. Particulars FY 2004-05
1 Aggregate Revenue Requirement (Rs. Cr.) 14504.9
2 Revenue with existing tariff (Rs. Cr.) 13991.8
3 Revenue Gap (Rs. Cr.) 513.1
56
TD Losses (in )
Particulars 04-05 05-06 05-06 06-07
Particulars 04-05 Target Achieved Target
EHV system/ Transmission Loss 6.01 6.00 6.39 5.80
Distribution Loss 31.14 28.00 27.98 25.00
TD Loss 35.28 32.25 32.58 29.25
57
Theft Cases Detected
In Rs Cr.
58
District wise Targets for Ag.Pump energisation
for 2006-07
NO. D I S T R I C T   Application Paid Pending with Target Achmt.during
      Received Pending Test Report for 2006-07 upto
      as on as on as on 2006-07 31.05.06
      31.3.2006 31.3.2006 31.3.2006    
1. Gr.Mumbai   - - - - -
2. Thane B 653 526 519 635 107
3. Raigad B 285 170 24 170 57
KALYAN ZONE   938 696 543 805 164
4. Ratnagiri B 501 271 134 271 84
5. Sindhudurg B 699 296 198 296 22
  KONKAN ZONE   1200 567 332 567 106
  Kokan Region   2138 1263 875 1372 270
6. Nasik 46155 22270 8563 16686 1755
7. Dhule 6816 2829 1426 1552 162
8. Nandurbar 4529 1918 511 416 76
9. Jalgaon 20739 10432 6016 4655 330
10. Ahmednagar 44105 23573 11068 13732 112
  NASIK ZONE   122344 61022 27584 37041 2435
11. PUNE ZONE   27503 14523 7058 3017 1137
12. Satara 12920 8336 3314 3724 660
13. Sangli 16404 11224 4447 1577 754
14. Solapur 37204 19458 6571 2514 1261
15. Kolhapur 9041 3127 2044 648 640
  KOLHAPUR ZONE   75569 42145 16376 8463 3315
  Western Maharashtra   225416 117690 51018 48521 6887
59
Contd
NO. D I S T R I C T   Application Paid Pending with Target Achmt.during
      Received Pending Test Report for 2006-07 upto
      as on as on as on 2006-07 31.05.06
      31.3.2006 31.3.2006 31.3.2006    
16. Aurangabad 13293 11074 8763 8763 522
17. Jalna 11670 4548 2422 2422 61
18. Parbhani B 8934 4859 3412 4860 277
19. Hingoli B 3920 2980 1152 2980 178
  AURANGABAD ZONE   37817 23461 15749 19025 1038
20. Nanded 12047 7488 5241 5241 317
21. Beed B 7294 5679 2851 5679 577
22. Osmanabad 5510 4575 2370 2370 463
23. Latur 6111 6079 2739 2739 359
  LATUR ZONE   30962 23821 13201 16029 1716
  Marathwada   68779 47282 28950 35054 2754
60
Contd
NO. D I S T R I C T   Application Paid Pending with Target Achmt.during
      Received Pending Test Report for 2006-07 upto
      as on as on as on 2006-07 31.05.06
      31.3.2006 31.3.2006 31.3.2006    
24. Buldhana 29059 7810 4370 4370 345
25. Akola B 5673 960 948 971 397
26. Washim B 4869 1518 524 1518 68
27. Amravati 9236 5485 2899 2899 237
28. Yeotmal B 9113 6054 3998 7013 487
  AMRAVATI ZONE   57950 21827 12739 16771 1534
29 NAGPUR URBAN ZONE   6131 4417 4163 4163 149
30 Wardha 4529 2123 1808 1808 135
31. Bhandara B 3974 1374 1364 1379 104
32. Gondia B 4658 649 649 649 48
33. Chandrapur B 2464 2012 1856 2012 164
34. Gadchiroli B 346 200 179 200 50
  NAGPUR ZONE(R)   15971 6358 5856 6048 501
  Vidarbha   80052 32602 22758 26982 2184
  Total for State   376385 198837 103601 111929 12095
  Total for Backlog Dists.   53383 27548 17808 28633 2620
  Total for Non-Backlog   323002 171289 85793 83296 9475
  Total for State   376385 198837 103601 111929 12095
B Denotes Backlog
61
Communication Plan

• Communication Strategy
• Communication Focused towards internal Employees
• Communication of reforms to consumers
• Means of Communication
• Workshops with field staff and with unions
• Workshops conducted by Unions for members
• Staff Meetings at Division/Circle Level
• House Journal (E-magazine) Maha Vitaran Veej
  Varta
• Video message on Ten Point Program
• Articles in Newspapers

62
Officers KKPI
S N KKPI KKPI Weightage HOD
1 Percentage DTC having losses Below 15 ( U ) 05 CE (IR)
1 Percentage DTC having losses Below 25 ( R ) CE (IR)
2 Percentage Feeders having losses Below 15 ( U ) 05 CE (IR)
2 Percentage Feeders having losses Below 25 ( R ) CE (IR)
3 Sub-division / Division / Circle/Zone losses Sub-division / Division / Circle/Zone losses 05 CE (IR)
4 Repatriation against target Repatriation against target 10 CE (Comm)
5 Commercial efficiency Rs. collected/ input units Commercial efficiency Rs. collected/ input units 10 CE (Comm)
6 Normal billing percentage Normal billing percentage 05 CE (Comm)
7 FIR lodged/Compounding cases FIR lodged/Compounding cases 10 CE (Comm)
8 Arrears in Days RCI Live 03 CE (Comm)
8 Arrears in Days Others Live 02
8 Arrears in Days RCI PD 05
9 Percentage DTC failure against target Percentage DTC failure against target 05 CE (LM)
10 SAIFI / SAIDI SAIFI / SAIDI 05 CE (LM)
11 Reduction in Accidents Reduction in Accidents 05 CE (LM)
12 Pending RCI connections beyond SOP Pending RCI connections beyond SOP 05 CE (Dist)
13 Annual plan progress Physical 05 CE (IS)
13 Annual plan progress Financial 05
14 Capacitors MVAR in service out of MVAR installed Capacitors MVAR in service out of MVAR installed 05 CE (Dist)
15 Training (mandays) Training (mandays) 05 CE (IR)
Total Total 100
63
Drive Against Corruption

• Drive including abetment action against
  employees
• - FIR Against 22 Employees
• - Disciplinary Action Against 389 Employees

64
Restructuring in Other StatesGovernment Support
ORISSA
ANDHRA PRADESH
BALANCE SHEET RESTRUCTURING SUPPORT
TRANSITION PERIOD SUPPORT
BALANCE SHEET RESTRUCTURING SUPPORT
TRANSITION PERIOD SUPPORT

• State Government Gained due to
• Up-valuation of assets
• Equity enhancement
• Recognition of Rs 340 cr of loans from Govt
  against the up-valued assets

HANDS OFF APPROACH AFTER UNBUNDLING
Assets up-valued Net Balance Sheet restructuring
support of approx. Rs 700 cr
GoAP transition period support of Rs 2,500 cr
KARNATAKA
RAJASTHAN
BALANCE SHEET RESTRUCTURING SUPPORT -DRAFT
TRANSITION PERIOD SUPPORT
BALANCE SHEET RESTRUCTURING SUPPORT
TRANSITION PERIOD SUPPORT
Terminal liability assumed by the
Govt Restructuring support substantial
GoR restructuring support of Rs1,698 cr Pension
liability passed on to the consumers
GoR annual subsidy support of Rs 500 cr approx.
Transitional period support of Rs 2,100 cr annual
for the last 3 ys
65
DTC Losses
66
Metering Plan for Agricultural Consumers

• About 9.5 lakhs consumers have been metered out
  of 25 lakhs Ag consumers
• Remaining 16.65 lakhs Ag consumers to be metered
  by FY08

Figures in lakhs
Existing Ag consumers to be metered FY 07 FY 08
Total (16.65 lakhs) 6.0 10.65
67
Special Gaothan feeder separation Scheme

• Number of Districts Selected 20
• Number of villages to be benefited 10232
• No of Feeders 1650
• Cost 713 Crores
• Estimated Load Relief 1930 MW
• Estimated completion during 06-07 2500 Villages
• Estimated Scheme completion Sept 09
• Already Completed 158 Villages, 90 Feeders
• Load Managed 100 MW

68
Number of Villages underAkshay Prakash Yojana
(As on 15/06/2006) - 4611 Villages
Akshay Prakash Yojna
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)

70
Load Curve for APY Single Phasing
71
Single Phasing Scheme
Phase-I 8000 Villages Phase-II 4500 Villages

• Single Phasing Phase -I
• Scheme Profile
• Number of District - 23 nos.
• Number of villages to be benefited - 9963 nos.
• No of feeder - 1140 nos.
• Scheme Cost - 235 Crores
• Demand Relief - 1150 MW
• Estimated Scheme Completion August 2006
• 78 ( 7800 Villages) of work completed and relief
  of 909 MW demand relief obtained till date

72
Single Phasing Phase II
Single Phasing Scheme

• Extending Single Phasing (Phase II) on basis of
  the result observed from existing scheme
• Scheme Profile
• Number of villages to be benefited 4515
• No of feeders 682
• Estimated Scheme Cost in Rs. Crs. 270
• Estimated Demand Relief in MW 500
• Expected Date of Scheme Completion March 07

73
High Voltage Distribution System
Area Estimated Cost (Rs Crore)
Pune, Rastapeth 8.39
Nashik 0.6
Vasai 1.75
Thane, Mumbra 0.7
Nagpur, Laskaribaug 7.85
Jalgaon 5.69
Aurangabad 9.25
Nagpur, Binaki 5.88
Kalyan, Kon 0.98
Amravati 8.24
Total 49.33
74
DRUM Project

• Urban division- I, Aurangabad Selected as pilot
  site.
• Project to be implemented with the assistance of
  USAID, MoP.
• DPR preparation completed.
• Cost of the Scheme- Rs. 131 Crores.
• Scheme submitted to PFC on 6th March for
  financial assistance, under APDRP scheme.
• Ten divisions identified as shadow Units to
  compete with Aurangabad.
• Invitation of Tenders for various works in
  progress at Aurangabad Zone

75
(No Transcript)
76
(No Transcript)
77
Reduction in Distribution Losses

For Circles with above 40 Distribution losses - 3 reduction in every year
For Circles having losses between 30 to 40 - 3 reduction in every year for first three years and 1.5 in next two years
For Circles having losses between 25 to 30 - 3 in first two years and 1 in next three years
For Circles having losses between 20 to 25 - 1.5 in first two years and 1 in next three years
Companys Target for Loss Reduction over 3 years
28 ? 25 ?
22 ? 19 (FY 05-06) (FY 08-09)
78
Effect of Free Power
2004-05 2005-06 Change Change
Energy Billed (MUs) 43549.8 46704.5 3154.7 7.2
Demand (Rs. Cr.) 13587.95 15371.60 1783.65 13.1
Collection (Rs. Cr.) 14418.75 15371.60 952.85 6.6
Subsidy (Rs. Cr.) 1863.82 1562.48 -301.34 -16.2
Ag Arrears (Rs. Cr.) 2295.45 2806.99 511.54 22.3
Collection Efficiency () 106 102 -4

• Energy billed increased by 7.2, Demand by 13.1
  in 2005-06.
• Collection increased by only 6.6 mainly due to
  16.2 reduction in subsidy
• Reduced subsidy also leading to 22.3 increase in
  Ag Arrears.
• Free Power Regime from July 2004 to May 2005, 9
  Months in 2004-05 and 2 Months in 2005-06.

79
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
ATC 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 1360
DTC Failure Rate () 18.52 16.14
Capital Investment (Rs. Cr.) 511.27 1277.43
Cash Losses (Rs. Cr.) 998 150 (Projected)
SCADA Progress Nil Nil Nil 10 Cities
Call 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

80
Bhiwandi Circle- Distribution Area
1,73,883 Consumers
81
Bhiwandi Circle Key Statistics
82
Bhiwandi Circle -Key performance indicators

• In spite of the improvements in four consequent
  years from 2001-02 to 2004-05, the Distribution
  losses have gone up in 2005-06
• Collection efficiency improvements have been
  primarily attributable to increase in subsidy
  amount

83
What MSEDCL expects from DF in Bhiwandi ?

• Reduction in technical TD losses and theft
• Improvement in Metering, Billing and Revenue
  Collection
• Bring innovative approaches to improve collection
  of arrears
• Undertake network evaluation and make capital
  investments to improve efficiencies
• Enhancement in customer service quality

A win-win scenario for Consumers MSEDCL
84
Responsibility Sharing

• Handover of assets on as-is-where-is basis
• Handover of willing employees who get selected by
  the DF
• Supply of Power
• Incentive for past arrears (before appointment of
  DF)

• OM of the network
• Metering, Billing Collection
• Plan capital investments to upgrade the network
• Arrears collection
• Meeting all the obligations of MSEDCL as
  distribution licensee

85
Responsibilities of DF

• Consumer Related
• Metering (reading, meter maintenance /
  replacement, Installation of new meters)
• Billing (printing and distribution)
• Collection (both current revenues and arrears)
• Issuing new connections
• Street light maintenance
• Adherence to MERC all provisions including Supply
  Code and SoP
• Attending system faults within its area
• Attending consumer grievances
• Network Related
• Distribution asset maintenance (wires, poles, DT,
  switchgear etc.)
• Network analysis and improvement planning
• Make capital investment for upgradation of network

86
Responsibilities of MSEDCL

• Handover of physical assets in the circle
• Network assets in field from the start of
  outgoing 22 kV feeders of EHV s/s
• Assets in stores as opening inventory
• Independent consultant to physically verify
  assets certify opening level of TD losses
• Handover of willing employees on deputation
• Existing MSEDCL Deputation rules will be
  applicable.
• Supply of energy
• Minimum Assured Energy 80 of the present energy
  input to Bhiwandi Circle
• As per the pre-determined schedule of supply
  applicable to all circles of MSEDCL till the need
  for load shedding persists
• Operation of arrears settlement mechanism in the
  circle for the arrears prior to appointment of DF

87
Remuneration to DF
Energy Input Rate at 22 kV Feeders - (Amount
per unit) x (units input into the system) in any
year Bids invited on yearly input rates -
Indexation for tariff revisions/adjustments
Financial Evaluation based on levelised input
rates
Incentives on arrear collection - 10 for live
consumers beyond three months - 20 for PD
Consumers
88
Financial Benefits to MSEDCL

• Highest bidder vs business as usual

Financial benefits to MSEDCL works out to Rs.
2055.10 Cr over period of 10 years
89
Overall hand-over process in progress
Pre-DFA
Transition
Monitoring
High Level Committee (HLC) DFA Negotiation,
Resolving issues of JAT, Employee deputation
process, Coordination with MERC, Govt and others.
Supported by Head office team
Head-office monitoring team to ensure business
continuity during the transition process
Head-office monitoring team develops formats for
continuous monitoring of the DF activities and
operationalisation of issues with respect to the
DFA
Field level support team to support head office
monitoring team
Field level support team as representative of
MSEDCL to monitor activities of DF
Joint Audit Team Auditing opening levels
Field level support team for supporting HLC and
JAT