*** You cannot just stop there Mridul :-).
Let us go into these issues, one by one, and attempt to discover
where the problems lie. Otherwise it will be yet another half-dug
project, left unfinished, often for fear of finding unpleasant
truths.
At 5:01 PM +0530 6/10/05, mridul bhuyan wrote:
Dear Ram,
As far as I know, the loan was sanctioned to Assam provided Assam go for the power sector reforms i.e. seperation of ASEB in to three different units i.e.Generation, Transmission & Distribution. The long awaited reform has been initiated only a few months back due to the resistance from various unions of ASEB. This restructuring has taken place 3/4 years back in other states of India. Even after restructuring in Assam has been initiated, the modalities of working of these seperate administrative units are yet to be sorted out. Assam will get the loan only after restructuring is completed, as far as I know. GOI plans to go for privatisation after the restructuring in step by step starting from Distribution, transmission & Generation in that order.
The power scenario in Assam is in a dire state. Can you imagine only 40/50 MW of generation has been added by ASEB from 1996 onwards till now? The Karbi Langpi project has been shelved after spending crores of rupees for the last 15 years. The largest generating unit Bangaigaon Thermal Power Station of ASEB i.e. 4X60 MW (coal based) is generating no power and almost on the verge of closure. Same is the case with Chandrapur Thermal Power Station 2X20 MW (LSHS Diesel based), which is sitting idle. Whatever power Assam gets are from Meghalaya, NEEPCO, Loktak (NHPC) and its own generation in Namrup & Lakwa. Do you know, more than 20,000 people are working in ASEB generating less than 150 MW and with almost equal manpower, National Thermal Power Corporation is generating more than 10,000 MW. This is a neverending story. Lets stop here. I don't want to aggrieve myself anymore.
Regards
Mridul
>From: Ram Sarangapani <[EMAIL PROTECTED]>
>Reply-To: Ram Sarangapani <[EMAIL PROTECTED]>
>To: Assam <[email protected]>
>Subject: [Assam] Re: Power Crises in Assam-2
>Date: Thu, 9 Jun 2005 09:17:48 -0500
>
>The Asian Development Bank had provided a $250 million loan package to
>Assam to restructure its power sector.
>
>Anyone knows what is the progress of this ADB aid?
>
>BTW: Here is the ADB news
>
>--Ram
>
>____________________________
>Helping Indian State of Assam to Overhaul Power Sector
>
>
>MANILA, PHILIPPINES (10 December 2003) - The Asian Development Bank
>(ADB) will help the Government of Assam, India, restructure its power
>sector to deliver electricity more efficiently to consumers through a
>US$250 million loan package.
>
>The Assam Power Sector Development Plan (SDP) comprises a policy loan,
>an investment loan, and three technical assistance (TA) grants to
>support a comprehensive program of reform.
>
>The US$150 million policy loan will help restructure Assam State
>Electricity Board (ASEB), a vertically-integrated utility, into
>independent companies and strengthen its policy and regulatory
>framework to implement reforms.
>
>The US$100 million investment loan will improve the transmission and
>distribution system, introduce a revenue management system, and
>increase the reach of electricity in rural areas.
>
>Assam, a small state in the center of northeastern India blessed with
>abundant natural resources, is a strategic corridor for the region,
>but unreliable power from the state-owned ASEB has hampered industrial
>growth.
>
>"The lack of sufficient and reliable power is eroding the state's
>competitiveness and prevents it from attracting industrial investments
>from outside," says Tomoyuki Kimura, an ADB Senior Energy Sector
>Specialist.
>
>"Improved power supply at a reasonable cost is essential to revive the
>state's industry and economy. Equally important is improving the
>financial sustainability of the power sector so that it is no longer a
>drain on state finances."
>
>Because of technical and financial constraints, ASEB operates below
>capacity and is unable to meet the total power demand.
>
>ASEB tries to fill the supply shortage by purchasing power from
>neighboring states and other government enterprises, but financial
>problems caused by its high cost structure and poor billing and
>collection system are a major constraint.
>
>Only 21% of the 4.5 million households in Assam receive electricity
>and per capita power consumption is only 104 kilowatt-hours, less than
>one third of the national average.
>
>The Board is heavily dependent on state government support, resulting
>in more use of public funds at the expense of education and health,
>for example.
>
>The state government began its restructuring program with the
>establishment of the Assam Electricity Regulatory Commission (AERC) in
>2001 to remove from it the task of regulating the power sector.
>
>It also "unbundled" ASEB into generation, transmission and
>distribution companies, but needs assistance to further implement the
>reform program.
>
>The SDP was included in the India Country Strategy and Program for
>2003, which provides extended coverage to the northeastern region
>where the poverty incidence is much higher than the national average
>and where there is significant potential for regional cooperation.
>
>In preparation for the SDP, ADB approved a TA grant in 2002 to help
>the state government plan the restructuring of ASEB, and another TA
>grant in October 2003, financed by the Japan Special Fund, to boost
>the capacity of AERC to promote power sector reforms.
>
>Power is one of the major sectors in infrastructure development where
>ADB's intervention will be directed to policy reforms and capacity
>building, combined with physical investment support. Since 1986, ADB
>has provided over US$2.5 billion worth of loans and grants to India's
>power sector.
>
>The SDP includes three other TAs amounting to US$1.5 million for the
>reorganization of ASEB, institutional development for rural
>electrification, and policy and legal support for power sector
>reforms.
>
>The TAs will be financed by the India Trust Fund of the United
>Kingdom's Department for International Development and administered by
>ADB.
>
>The Finance and Power Departments of the state government are the
>executing agencies of the policy loan, which carries a 15-year term,
>including a grace period of three years.
>
>The state government's Power Department and ASEB are the executing
>agencies for the investment loan, which has a 20-year term, including
>a five-year grace period. The project is due for completion in
>December 2006.
>
>Both the policy and investment loans will come from ADB's ordinary
>capital resources, with interest determined in accordance with ADB's
>LIBOR-based lending facility.
>
>More at adb.org/media
>
>_______________________________________________
>Assam mailing list
>[email protected]
>http://pikespeak.uccs.edu/mailman/listinfo/assam
>
>Mailing list FAQ:
>http://pikespeak.uccs.edu/assam/assam-faq.html
>To unsubscribe or change options:
>http://pikespeak.uccs.edu/mailman/options/assam
NRIs, FREE Money Transfers. Now more with the Rupee Checking Account!
_______________________________________________
Assam mailing list
[email protected]
http://pikespeak.uccs.edu/mailman/listinfo/assam
Mailing list FAQ:
http://pikespeak.uccs.edu/assam/assam-faq.html
To unsubscribe or change options:
http://pikespeak.uccs.edu/mailman/options/assam
_______________________________________________ Assam mailing list [email protected] http://pikespeak.uccs.edu/mailman/listinfo/assam
Mailing list FAQ: http://pikespeak.uccs.edu/assam/assam-faq.html To unsubscribe or change options: http://pikespeak.uccs.edu/mailman/options/assam
