Within three years, Madhya Pradesh has wiped out huge electricity shortages and losses in a rare success story in the distribution sector. This was possible with 5,000 young professionals, guidance from PricewaterhouseCoopers and dogged determination from officials to inject a performance-driven culture. After a series of reforms, tariff hikes, involvement of private firms in supplying electricity to some cities and customer-friendly initiatives, Madhya Pradesh now enjoys 24-hour power supply.
Latest data available with the Central Electricity Authority shows that the state does not have power deficit. Distribution losses, which have crippled many state utilities, have fallen from 37 per cent to 27 per cent, narrowing the gap between revenue and cost to 60 paise per unit from 1. The gap is expected to fall to 43 paise this fiscal. Losses in the transmission segment are at 3.5 per cent, which is one of the lowest in the country.
To bring fresh air in the system, the state hired and trained 5,000 young professionals, including 1,500 engineers in the past three years. It also framed new service rules to ensure a performance-driven culture.
Madhya Pradesh principal energy secretary Mohammed Suleman said the government began with identifying the problem areas, including assessing the actual demand for electricity of the state.
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