Rajasthan Power Sector Reforms Act

Rajasthan Electricity Regulatory Commission

Financial Restructuring Plan

Restructuring of the Sector


Financial Restructuring Plan

The final Financial Restructuring Plan has been approved by GoR on 4.8.2003 incorporating therein a provision for cash transition support of Rs. 3800 crs, retention of Electricity Duty of Rs. 3951 crs., interest subsidy on IBRD Loan of Rs. 282 crs and subsidy under APDRP schemes of GoI of Rs. 145 crs up to 2011-12.


Restructuring of the Sector

With the notification of the Rajasthan Power Sector Reforms Transfer Scheme 2000, on 19th July, 2000 the assets, liabilities and personnel of the RSEB have been transferred to the newly formed five companies namely a generation company (RVUN), transmission company (RVPN) and three distribution companies, viz. Jaipur VVNL, Ajmer VVNL, Jodhpur VVNL. With this, Rajasthan became the first in the country to have completely separated all the three functions in a single stage. These companies have been incorporated under Indian Companies Act'1956.

  1. Power Generation : The existing Power Stations and those under commissioning in the State sector, have been transferred to a separate generation company viz. Raj.Rajya Vidyut Utpadan Nigam Ltd. (RVUN) registered under the Indian Companies Act, 1956.

    This company has started its operation, as a wholly state owned company and the State Government may, at a later stage, invite private sector participation in this company. This Company is responsible for operating all the existing generating stations of erstwhile RSEB and to complete the projects under commissioning of erstwhile RSEB.

  2. Power Transmission : A State owned transmission company Raj.Rajya Vidyut Prasaran Nigam Ltd. (RVPN) incorporated under the Companies Act, 1956, has been entrusted with the power transmission grid network of extra high tension lines including O&M of inter state tie lines, in so far as they pertain to the state. The RVPN is the state transmission utility in the State. RVPN has an allocation of power to the extent of 971.46 MW in shared power projects.

  3. Power Distribution : The State has been geographically divided into three distribution companies (with headquarters at Jaipur, Jodhpur and Ajmer) formed on considerations of viability and operational ease. Details of distribution companies are as under:-

Distribution Company Districts Covered O&M Circles Covered

Jaipur Vidyut Vitran Nigam Ltd,
Headquarter at Jaipur

Jaipur, Alwar, Dausa, Bharatpur, Karauli, Dholpur, Sawai Madhopur, Tonk, Kota, Jhalawar, Baran, Bundi

Jaipur City, Jaipur District, Alwar, Dausa, Bharatpur, Sawai Madhopur, Kota, Jhalawar.

Ajmer Vidyut Vitran Nigam Ltd,
Headquarter at Ajmer

Ajmer, Jhunjhunu, Sikar, Nagaur, Bhilwara, Chittorgarh, Udaipur, Rajsamand, Banswara, Dungurpur

Ajmer, Jhunjhunu, Sikar, Nagaur, Bhilwara, Chittorgarh, Udaipur, Banswara.

Jodhpur Vidyut Vitran Nigam Ltd,
Headquarter at Jodhpur

Jodhpur, Sri Ganganagar, Hanumangarh, Churu, Bikaner, Jaisalmer, Barmer, Pali, Jalore, Sirohi

Jodhpur City, Jodhpur District, Sri Ganganagar, Hanumangarh, Churu, Bikaner, Barmer, Pali.

These distribution companies, though presently owned by the State Government, will, in a phased manner, be converted into joint ventures (JVC) where the private partners will hold majority shares and management control including the obligation to bring in the required investments and to meet the performance obligations under the license.

The entire process of forming JVCs and transferring the distribution business to them was scheduled to be completed by the year 2004. However, the High Court of Judicature for Rajasthan at Jodhpur in the hearing of D.B. Civil Writ Petition No. 2146 / 2000 has granted stay on transfer of assets of the erstwhile RSEB to any private Company.

  1. Finalization of Transfer Scheme : The Transfer scheme as notified by the GoR on 19.7.2000 was provisional for a period of 6 months in case of personal and 1 year in case of assets and liabilities. The provisionality period of transfer of assets and liabilities of the erstwhile RSEB to the successor entities was extended to 18.1.2002 by the GoR. The GoR has issued amendments in the Transfer Scheme on 18.1.2002 and with these amendments the Transfer Scheme has become final.

  2. Rajasthan Power Sector Restructuring Project with IBRD Assistance : The World Bank has indicated likelihood support for Rajasthan Power Sector Reforms to the extent of US$ 880-1000 Million over the next 7-10 years. This loan would consist of several investment loans for strengthening of the transmission and distribution system in the State, sector adjustment loans to the State Govt. as well as financing from the International Finance Corporation for the privatized distribution companies. Out of above, a Loan Agreement for US $ 180 million has been executed with the World Bank on February 27, 2001 as a first investment loan. This loan is being utilized for strengthening of transmission and distribution system, installing LT less distribution system, capacitor installation, improving metering system and customer services, technical assistance etc. The loan was declared effective on 12th March 2001. The extended closing date for this loan is 30th June 2006. Procurement and other activities are at full swing and claims are being sent to World Bank for reimbursement.

    Upto 31.5.2005 Procurement orders of goods for 249 lots amounting to Rs. 758.86 crores (covering ICB, NCB & National Shopping) have been awarded. Procurement of goods is at advance stage, Goods are being delivered and execution of schemes is in progress. Reimbursement claims for Rs. 464.20 crores have been lodged and reimbursement of Rs. 437.51 crores have been received. The World Bank has disbursed US$ 112.85 Million (62.69%) out of USD 180.0 million upto 31.5.2005.


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