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Dated Aizawl, the 23rd January, 2013.


Venue : Conference Hall of Hotel Classic, Imphal
Date & Time : 17th January, 2013 (Thursday) from 10:00 am.

List of the Members & Invitees present appended.

The 10th Meeting of the State Advisory Committee for the State of
Manipur started with a brief welcome speech and a happy New Year wish from
Mr A. Chhawnmawia, IDES (Rtd) Secretary, JERC (M&M).
Mr H. Bihari Singh, Chairman, State Advisory Committee of Manipur
then took up agenda – wise discussion as mentioned below.
Agenda 1: Confirmation of the Minutes of the 9th Meeting of the SAC of Manipur
held on 17th January, 2013.
The Chairman asked the Members whether the Minutes properly
contained the items discussed in the previous meeting of SAC of Manipur or not.
After obtaining nod from the Members, the Chairman declared that the Minutes
of the previous meeting of the Committee stand confirmed.

Agenda 2: Power Sector Reforms.
The Chairman, after highlighting the need of reforming the Power
Sector as required by Electricity Act, 2003, NEP 2005 and NTP 2006, took up the
following items for discussion:-
A. As required by EA, 2003.
(I) Unbundling of the State Electricity Board/ Department.
The Chairman, after mentioning that the management of Power
Sector would be better if each of the generation, the transmission and the
distribution be placed under separate management with separate accounts
and that the State Government is seriously thinking to restructure the Electricity
Department and the draft report on unbundling and corporatization is now
under examination of the State Government, He requested the Members to
present their views. Dr. Ch. Ibohal Meitei, Professor, Manipur University also
intervened in the discussion stating his desire to hear from the Electricity
Department regarding the progress of corporatization.
Then, as requested by the Chairman to present highlight of the
present status, Mr L. Priyokumar Singh, ACE (E), informed the Members that the
department placed an order in 2011 to M/S SBICAP to study and submit
recommendation of the possibility that can be taken up for Power Sector reform
in the State. He further stated that the draft report of the SBICAP has been
submitted to the government which is now under active consideration by the
State Government and the department is not able to say the likely outcome
from the State Government, decision is yet to be made by the State
The Chairperson invited the Members to share their views on
restructuring and corporatization of the Department. Mr N. Dwijen Singh, ACE
(Civil) briefly informed the Members the three options in the draft report
submitted by SBICAP.
The Chairman clarified the structure of different three options in the
draft report. The first structure is Holding Company and Separate Transmission
Company and Distribution Company. Transmission and distribution functions will
be corporatized into separate subsidiary companies viz. TRANSCO and DISCOM.
Holding company shall have no specific functional responsibility and shall work
as the investment holding vehicle for TRANSCO and DISCOM and any future
investments in generation assets. The second structure is Generation Company
and Transmission Company under Holding company and separate Distribution
Company. The third one is keeping all the three functions viz Generation,
Transmissions and Distributions in one entity, viz Holding Company. Dr. Ch. Ibohal
Meitei, Professor, Manipur University informed the Committee that the
department needs to develop a kind of mindset to provide a service to the
satisfaction of the consumers.
The Chairman briefly elaborated the system of corporatization in
Assam and that in Tripura. He further mentioned that Power Sector in all big
States in the country are unbundled into separate generation company,
transmission company and one or more distributions companies.
Mr L. Sadananda Singh, General Secretary, Senior Citizens’ for
Society, Manipur informed the Committee his preference of putting the
distribution into separate corporation.
Mr Irengbam Arun, Senior Journalist cited that there is a better
power supply in Mizoram compared with Manipur and felt that better policy in
management of power is very much necessary for Manipur. He informed the
meeting that if power supply can be improved corporatization is welcomed.
Mr Basntakumar Wareppa, Programme Executive, Human Rights
Alert intervened in the course of discussion pointing out newspaper report of
availability of regular power supply to the residential locality of the Chief
Engineer, Electricity Department. He further informed the meeting that power
supply should be given to every consumers indiscriminately to ensure that equal
right has been enjoyed by all the consumers.
Dr. Ch. Ibohal Meitei, Professor, Manipur University informed the
meeting that he is aware of the private company participation in the distribution
of power supply. He felt that private participation will result in better competition
in power supply and suggested private participation possibility. He further
informed the meeting that the loss is maximum in the distribution system and he
felt it is necessary to provide room for private participation in this business. In
reply, Mr L. Priyokumar Singh, ACE, stated his expectation that after 3 to 5 yrs. of
the new corporation, private party participation in the distribution business will
be seen.
Chairman informed the meeting of his doubtfulness of private party
participation at present scenario when the loss is very high and the infrastructure
is inadequate. He suggested making room for the participation.
(II) Appellate Authority
Mr L. Priyokumar Singh, ACE (E) informed the meeting their problem
of finding appropriate person to function as appellate authority. The
Committee noted that Appellate Authority would play an important role
in regulating theft of power cases if Special Court functions properly and
therefore wanted the government to appoint neutral/unbiased technical
personnel as Appellate Authority as required by the Electricity Act 2003, in
the larger interest of the Stakeholders.
(III) Installation of meters – 100 p.c metering
Shri L. Priyokumar Singh, ACE informed the Members that the
Electricity Department would be able to complete 100% metering by March,
2014 with the present schemes for replacement of the existing ones and new
installations. The Chairman emphasized the need to have feasible target of
(IV) Consumer Grievance Redressal Forum (CGRF) and Internal Grievance Redressal
Cell (IGRC).
Dr. Ch. Ibohal Meitei, Professor, Manipur University felt that much
more publicity is to be done through print and electronic media (Local TV
Channels) as the consumers are not well aware of the Cells where they can
lodge complaints and get grievances redressed. Mr L. Priyokumar Singh, ACE
informed the Members that the Department has been doing its best effort to
intimate about the Cells through local newspapers and apprised the Members
that a centralized toll free complain room will be opened very soon.
B. As required by NEP 2005.
(I) Electrification of all households.
Mr. N. Sarat Singh, Chief Engineer (P) informed the Members that in
finalization of around 1, 00, 000 BPL to be electrified the identification of BPL is
required which is being sought from the state Government and the Department
is also trying to increase number consumers from electrification of rural villages.
He also opined that per capita consumption is to be worked out based on
availability of energy for consumption instead of actual consumption. Chairman
stated that the level of household electrification in the State would be about
60%. However the date furnished by the Department indicates about 30% only.
(II) Energy audit for segregating Techno-Commercial losses and its
In a written document of the Department, it is stated that in order to
identify unauthorized consumers, consumes without meters, theft of power and
take up corrective measures as per Regulations the Department submitted a
proposal dated 14-03-2013 to the Government for outsourcing 147 persons on
contract basis with a Budget proposal of ` 1, 17, 19, 600/-. In this regards, the
Government has directed to indicate the availability of fund for outsourcing the
required persons on contract basis. This does not have any relevance to the
segregation of the losses.
Metering at all voltage levels and consumers premises is being
taken up under the on going and proposed schemes.
Energy audit for segregating techno-commercial losses and its
reduction will be possible only after completion of the metering in 132
KV/33KV/11 KV transmission and distribution systems and 100% metering of all
categories of consumers. A physical target for 100% metering shall be fixed to
achieved the target for segregation.
C. As per National Tariff Policy, 2006.
(I) Introduction of “Open Access” in distribution & (II) Wheeling
The Chairman emphasized the need for determination of separate
tariff for Transmission and the Wheeling charge in order to facilitate both the
Open Access customer and the Consumer. The Chairman compared the high
voltage transmission system with the kind of highway (surface) which provides
for all kinds of traffic - day & night, and also expressed the desire to receive the
Transmission and Wheeling tariff petitions at an early date. Mr. N.Sarat Singh, CE
(P) assured the Members of filing Petitions for determinations of transmission tariff
and wheeling tariff as expected by the Chairman.
Agenda 3 : Intra-State Trading
Referring to the application received by the Commission from some
agency for issue of Intra-State Trading License, the Chairman briefly explained
the meaning of Trading in the Electricity business and also the way it works and
then sought for the views of the Members in this regard.
Replying a query from Dr. Ch. Ibohal Meitei, Professor, Manipur
University of Manipur Institute of Management Studies, Manipur University and
other Members regarding the source of power and trading avenue, Mr. N.
Shyamsundar Singh, JERC(M&M) Consultant informed the Members that the
trader may be buying from central unallocated share or any generator within
the State and it will resale to the consumers who want to buy power from the
trader. He further stated that in Mizoram, all have supported their entry in the
State except the Power & Electricity Department who opined that it is premature
for the State.
The Chairman informed the members that their entry in the State as
a power trader will create competition for better power supply and this will also
attract private party participation in generation within the state.
Members of the Committee expressed that Intra State Trading in the
State will benefit to the consumers of the State.
The Members unanimously decided to recommend the following for
onward submission to the Government for further needful.
1. Implementation of all the components under Power Sector Reforms
may be expedited under a time bound programme.
2. Intra-State Trading is acceptable; the policy of the Government in
this regard may be finalized in the consumer’s interest.
The Meeting ended with a vote of thanks to the Chair.
State Advisory Committee
H.11019/26/10-JERC : Dated Aizawl, the 23rd July, 2012.
Copy to:
1. PS to Hon’ble Chief Minister, (Power), Govt. of Manipur, Imphal for kind
information of the Hon’ble Chief Minister.
2. PPS to Chief Secretary, Govt. of Manipur, Imphal for kind information of
the Chief Secretary.
3. PS to Principal Secretary (Power), Govt. of Manipur for information and
necessary action of the Principal Secretary.
4. All Members/Special Invitees of the State Advisory Committee of
Manipur for kind information and necessary action.
5. Guard File.