Power Sector Reforms

POWER SECTOR REFORM IN ORISSA

1. April-1992 - Govt. of Orissa, OSEB and World Bank discussed the possible solution to Orissa Power Sector problems.

2. Nov-1993- Government of Orissa undertook a process Reforms and Restructuring of the Power Sector in the State. The restructuring process included (a) Restructuring:  by unbundling of generation, transmission and distribution. (b) Privatization: Through private sector participation in generation  and  distribution activities. (c) Competition: Through competitive bidding for new generation.(d) Regulation:  By transparent and independent Regulatory Body  (e) Tariffs:     By tariff reforms at Bulk Transmission and Retail levels.

3. January-1994- ECC engaged by the World Bank for a review of the reform proposals put forth for Orissa's power sector.

4. March 1994- The Steering Committee, chaired by the Chief Secretary and Task Force, chaired by the Energy Secretary for Power Sector Reform are constituted through a Government of Orissa Resolution.

5. May 1994- KPMG begins Financial and Management consulting work on the reform project for the World Bank.

6. July 1994- 9 (nine) Working Groups are constituted for implementation of the reform programme.

7. June 1995- The Working Group Reports are finalised. The 9 Working Groups are

merged and 7 Working Groups are created. The work is internalized in OSEB.

8. Nov. 1995- The Legislature of Orissa passes the Orissa Electricity Reform Act, 1995.

9. 03.01.1996- The Orissa Electricity Reform Act, 1995 was assented by the President of India.

10. March 1996- The State Govt. Notified 1st April, 1996as the date on which the Orissa Electricity Reform Act, 1995 shall come into force.

11. 01.04.1996- OSEB was split into GRlDCO and OHPC. GRIDCO takes over the transmission and distribution business and OHPC takes over the hydel generation business of OSEB.

12. July 1996- Orissa Electricity Regulatory Commission was constituted.

13. 19.11.1997- GRIDCO divided its distribution functions into four geographical zones, namely Western Zone, Northern Zone, Southern Zone and Central Zone. GRIDCO incorporated four wholly owned subsidiaries namely WESCO, NESCO, SOUTHCO and CESCO under the Companies Act, 1956.

14. 28.11.1997- The process of privatization of distribution business was initiated with the issue of press advertisements inviting Request for Qualification (RFQ) in connection with disinvestments of 51% equity share capital held by GRIDCO in the Distribution Companies.

15  Feb-1998 to Nov-1998-
  • 54 companies purchased RFQ from GRIDCO..
  • 13 companies/consortium submitted Statement of Qualification
  • 11-companies/consortium qualified to participate in the privatization. .
  • Due diligence process completed.

16. 26.11.1998- Section 23 of the Orissa Electricity Reform Act was amended empowering the State Govt. to draw Transfer Scheme to transfer and vest in a subsidiary Company of GRIDCO, any undertaking or part thereof comprising property, interest in property, rights and liabilities and personnel etc. on such terms and conditions as may be specified in the Transfer Scheme. Pursuant to the above, Orissa Electricity Reform (Transfer of Assets, Liabilities, Proceedings and Personnel of GRIDCO to Distribution Companies) Rules, 1998 was notified by the State Govt.

17. 14.01.1999- Three Companies/ Consortium submitted their Technical and Financial bids namely BSES Ltd., TEC-Viridian Consortium and Singapore Power - Grasim Industries Consortium.

18. 27.03.1999- State Government accepted the recommendation of the Board of GRIDCO and conveyed its approval for the disinvestments of equity in Distribution Companies.

19. 31.03.1999- BSES signed Shareholders Agreement and Share Acquisition Agreement.

20. 01.04.1999- The management of the three companies was handed over to BSES pursuant to the Agreements signed.

21. 01.09.1999- GRIDCO disinvested 51% of its equity held in CESCO in favour of the consortium led by AES Corporation, USA after obtaining approval of State Govt. The management of CESCO was handed over to AES from 01.09.1999.

22. 29.03.2004- A new Public Limited Company under the name and style "Orissa Power Transmission Corporation Limited" was incorporated to carry on the business of transmission, STU and SLDC functions of GRIDCO.

23. 31.03.2004- The new company obtained the Certificate for Commencement of business, which entitles the company to carry on any business.

24. 01.04.2005- OPTCL became functional. GRIDCO continue to carry on its Bulk Supply and Trading functions.