New Delhi, Oct. 26: The preliminary scorecard for state electricity boards is out — and it puts a stamp of approval on the popular notion that the power utilities in the east and the Northeast are the worst managed in the country.
Andhra Pradesh — one of the most aggressive in pursuing power sector reforms — comes out on top of the totem pole with an evaluation score of 73 per cent. Four other states that have been pursuing power reforms close out the top five: Karnataka (71 per cent), Rajasthan (64 per cent), Haryana (63 per cent) and Maharashtra (61.5 per cent).
The evaluations have been done by two major credit rating agencies — the Investment Information and Credit Rating Agency (ICRA) and the Credit Rating Information Services of India Ltd (Crisil).
The eastern states figure at the lower end of the spectrum with West Bengal — a state that has been weak-willed on power reforms — being the best run among them with a score of 35.88 per cent. Orissa — one of the first states to start power reforms in the country which later ran into trouble — has managed a score of 33 per cent. Bihar’s score is woeful at 11.2 per cent and Assam got 18.83 per cent.
The northeastern states and Sikkim are at the bottom of the pile, with Meghalaya the best run among them with a score of 24.58 per cent. Arunachal Pradesh, with a score of 10.98 per cent, has the worst power utility in the country.
A joint report by both the agencies containing the parameters for evaluating the state electricity boards was presented to Union power minister Anant Geete here today.
“This is a first-of-its-kind exercise undertaken by the agencies. We hope this will help expedite the reform process in the power sector. During our exercise for the states, it was found that evaluation is not a simple credit-rating exercise. Since we found that the scores can change rapidly, we had suggested a six-monthly evaluation,” said Roopa Kudva, executive director and chief rating officer of Crisil.
The two agencies insist that the evaluation is “not a credit-rating exercise” and scores can change rapidly.
n See Business Telegraph