1. AT&C Loss Status & Way Forward Mumbai 5 th August 2006 Chief Engineers Review Meet

2. AT&C Losses Drivers for AT&C losses AT&C losses Comparison AT&C loss targets Distribution Losses Zone/Circle-wise Status MahaVitaran Action Plan & Achievements MahaVitaran Future Plan Commercial Losses Zone/Circle-wise Status MahaVitaran Action Plan & Achievements MahaVitaran Future Plan AGENDAAGENDA

3. AT&C Loss AT&C Loss(%) = (Energy Input – Energy Realised) x 100 Energy Input Clearest measure of overall efficiency of the distribution business as it measures technical as well as commercial losses Energy Realised = Energy Billed X Collection Efficiency Collection Efficiency (%) = Amount Realised X 100 Amount Billed

4. Drivers for AT&C Losses TECHNICAL LOSSESCOMMERCIAL LOSSES Overloading of existing lines & substation equipments Absence of up gradation of old lines and equipments Low HT: LT ratio Poor R&M of equipments Non-installation of sufficient capacitors Low metering/billing/collection efficiency Theft, Pilferage and tampering of meters Low accountability of employees Absence of Energy Accounting & Auditing

5. MahaVitarans Losses – A Snapshot Parameter2003-042004-052005-06 Energy Input (MUs)65,92867,28969,275 Energy Sales (MUs)40,74443,55046,705 T&D Losses (%)38.20%35.28%32.58% Distribution Losses (%)33.12%31.14%27.98% Collection Efficiency (%)96.34%106.11%102.01% AT&C Losses (%)35.57%26.93%26.53%

6. AT&C Losses ZONEFY 2004-05FY 2005-06 KALYAN15.86%17.19% NAGPUR20.74%20.42% PUNE19.28%21.90% KOKAN20.55%23.23% NAGPUR (U)25.94%25.23% BHANDUP (U)29.23%29.54% KOLHAPUR22.83%30.86% NASIK31.17%41.07% AMRAVATI39.45%41.08% AURANGABAD44.67%45.39% LATUR61.08%63.71% Circle-wise AT&C Losses

7. AT&C Loss Targets ZONEFY 2006-07FY 2007-08FY 2008-09 LATUR544434 AURANGABAD403530 AMRAVATI353025 NASIK353025 KOLHAPUR272319 BHANDUP (U)272319 NAGPUR (U)221916 KOKAN201715 PUNE191715 NAGPUR181615 KALYAN161514 Circle-wise AT&C Loss Targets

8. Distribution Losses ZONEFY 2003-04FY 2004-05FY 2005-06 KALYAN21.27%19.52%17.54% NAGPUR22.38%22.96%19.53% KOKAN22.69%17.85%19.78% PUNE23.03%19.70%20.69% BHANDUP (U)27.70%23.55%24.11% NAGPUR (U)34.01%26.64%24.63% KOLHAPUR24.28%22.07%25.53% AMRAVATI38.18%38.39%36.19% NASIK32.93%30.29%36.55% AURANGABAD41.62%40.22%38.47% LATUR51.96%55.74%52.93% Circle-wise Distribution Losses

9. Distribution Losses Action Taken & Achievements Energy accounting and fixing of responsibility at all levels -80% Feeders EA Completed, -50,000 DTCs (about 49%) Metered & EA Completed50,000 DTCs (about 49%) Metered Theft reduction drive including abetment & action against employees: - FIR Against 22 Employees - Disciplinary Action Against 389 Employees - 110 Flying Squads Deployed - 26572 Thefts detected26572 Thefts detected Outsourcing of Meter Reading, Bill Distribution and Collection Bhiwandi Franchisee Finalized HVDS Centre of Excellence - DRUM Project at Aurangabad : Tenders InvitedDRUM Project Commercial Intelligence Wing Set Up LOSSES REDUCED BY 3.15% TO 27.9% IN 2005-06

10. Distribution Losses to be reduced to 19 % by 2008-09. [with 3% reduction each year]with 3% reduction each year Energy Audit of the remaining 2830 feeders to be completed during this year Metering of 1.5 Lakh DTCs to be completed by March 2007 & EA started 6 police stations to be set up Bhiwandi to be handed over to Franchisee High Loss feeders (Losses above 50%) to be franchised out (Feeder Franchisee Scheme) High Loss DTCs to be franchised out (Micro Franchisee Scheme) 16.65 Lakh Ag connections to be metered by the year 2007-08. 20,000 HT consumers will get AMR Ludhiana Pattern to be introduced on large scale. FUTURE PLANS

11. Collection Efficiency ZONEFY 2003-04FY 2004-05FY 2005-06 KALYAN102.78%104.05%99.85% NAGPUR (U)98.55%100.31%98.57% PUNE91.98%100.06%98.00% NAGPUR97.97%101.36%97.12% KOKAN92.84%96.11%95.18% KOLHAPUR76.81%98.91%92.72% BHANDUP (U)88.39%92.30%92.50% NASIK85.79%98.40%92.38% AMRAVATI91.32%98.08%92.14% AURANGABAD83.72%91.84%88.06% LATUR67.29%87.93%77.02% Circle-wise Collection Efficiency

12. Collection efficiency Action Taken & Achievements After Company formation Monthly repatriation has increased from Rs. 932 Cr. to Rs. 1426 Cr. Collection Efficiency has reached 95.32% in 2005-06. Elimination of average billing: Normal Billing Increased to 84.2% in 2005-06 fromNormal Billing 77.44% in 2004-05. 100 % disconnection of consumers with arrears above Rs.5000/- Reduction of arrears (RCI Arrears which were Rs.1465.23 Cr in Mar05 reduced to Rs.1360.74 Cr in Mar06, have however increased to Rs. 1399 Cr in May06 ) Reduction of arrears E-billing (all Bills), Spot billing (20 Cities), ATM Cash Collection Centres (50), Drop Boxes, E-payment Introduced. Special PD Arrears Recovery Team Set Up: Rs. 8.28 Crs Recovered. RCI connections pending Consumer Grievance Progress of Call Centres Progress of CFC

13. FUTURE PLANS Outsourced Spot Billing and ATMs at all circles Outsourced Mobile Collection Centers Increasing the scope of e-payment Collection Efficiency to be increased by 2% every year Bhiwandi Franchised out

14. Our AIM FY 2005-06 26.5% AT&C Loss 26.5% FY 2008-09 17% AT&C Loss 17% Feeder EA DTC Audit Normal Billing RCI Arrears To undertake higher feeder accounting To concentrate on feeders with loss >25% To increase % of circles with normal billing more or equal to MahaVitarans Average To undertake higher DTC accounting To concentrate on DTCs with loss >25% To substantially reduce RCI Arrears To reduce the number of connections pending (especially Commercial)

15. THANK YOU

16. Circle-wise AT&C Losses CIRCLE FY 2004-05 FY 2005-06 Akola37.6%33.8% Amravati37.2%31.7% Buldhana38.9%27.1% Yavatmal40.0%37.1% Aurangabad (U)33.0%29.7% Aurangabad (R )32.9%30.8% Jalna33.4%28.8% Parbhani35.7%32.3% Bhiwandi22.9%29.7% Thane (U)24.0%23.6% Washi10.9%6.8% Kalyan I32.8%30.3% Kalyan (U)32.5%24.0% Pen9.4%8.8% Vasai18.0%16.1% Ratnagiri13.6%15.1% Sindudurg26.3%28.6% Ganeshkhind (U)13.4%11.8% Pune (R)23.4%24.8% Rastapeth (U)17.5%16.3% CIRCLE FY 2004- 05 FY 2005-06 Beed38.4%38.8% Latur51.5%37.8% Nanded51.7%45.4% Osmanabad49.3%34.1% Nagpur (U)33.0%30.8% Nagpur (R )19.4%17.4% Bhandara38.4%32.4% Chandrapur12.8%10.8% Gadchiroli36.4%31.3% Gondia38.4%32.4% Wardha14.0%10.4% Anagar26.2%30.6% Dhule37.9%36.8% Jalgaon30.4%32.8% Nasik (U)17.2%16.9% Nasik (R )28.4%35.8% Kolhapur14.1%13.3% Sangli23.8%16.4% Satara17.9% Solapur26.8%32.8%

17. Circle-wise AT&C Loss (%) Target

18. Circle wise Distribution losses (%) CIRCLE FY 2004- 05 FY 2005-06 Beed55.16%59.10% Latur56.66%46.70% Nanded56.15%55.80% Osmanabad53.60%48.10% Nagpur (U)33.50%31.10% Nagpur (R )20.28%19.00% Bhandara38.39%34.80% Chandrapur13.74%12.10% Gadchiroli37.16%34.70% Wardha14.18%11.10% Anagar27.45%36.40% Dhule38.89%42.20% Jalgaon32.42%38.80% Nasik (U)18.04%17.20% Nasik (R )29.92%38.80% Kolhapur15.33%14.90% Sangli24.73%17.80% Satara19.63%20.10% Solapur27.48%39.90% CIRCLE FY 2004-05 FY 2005-06 Akola39.90%37.39% Amravati39.14%34.80% Buldhana40.40%30.40% Yavatmal41.87%42.40% Aurangabad (U)34.45%31.10% Aurangabad (R )36.66%37.90% Jalna37.01%33.00% Parbhani52.12%52.50% Bhiwandi37.44%44.50% Washi11.81%7.90% Kalyan I32.82%25.10% Kalyan (U)32.82%31.50% Pen9.63%9.50% Vasai19.04%17.50% Ratnagiri15.11%16.90% Sindudurg27.35%29.50% Ganeshkhind (U)14.46%12.70% Pune (R)24.20%27.50% Rastapeth (U)18.30%17.10%

19. DTC Losses DTC Energy Audit

20. DTC Energy Audit (May 06) RankCircleE.A. Done 0-25% 1Ratnagiri154282% 2Washi212580% 3Rastapeth312473% 4Sindhudurg65071% 5Ganehkhind329665% 6Solapur155763% 7Nagpur (U)240962% 8Nashik (U)317959% TOP 8 BOTTOM 8 State Average = 49%, Out of 49686 RankCircleE.A. Done 0-25% 1Beed5158% 2Bhiwandi11149% 3Parbhani82211% 4Osmanabad34111% 5Nanded79617% 6Abad (R )83517% 7Gondia30518% 8NRC130419%

21. Zone Wise Feeder Energy Audit Report (May 2006) ZONE No of Feeders EA Generated LOSS RANGE Below 0%0-25%Above 25% No.% % % Amravati52812122.92407.5836769.51 Aurangabad212198.963717.4515673.58 Bhandup (U)3018327.577524.9214347.51 Kalyan38211129.068121.2019049.74 Konkan1072624.302826.175349.53 Kolhapur52313125.0510419.8128855.07 Latur725669.1016022.0749968.83 Nagpur (U)3396218.296418.8821362.83 Nagpur2033215.764421.6712762.56 Nashik57223340.73406.9929952.27 Pune40211628.439322.7919347.30 Total4294100023.2976617.84252858.87

22. Theft Cases Detected In Rs lakhs

23. Outsourcing of Meter Reading, Bill Distribution & Collection Agreement has been signed between the Dir (Opns), Mahavitaran and Director (Technical Education) in Maharashtra about the Meter Reading, Data Punching & Bill Distribution by the ITI Students. Outsourced Spot Billing has been introduced in 20 cities. It will be further extended in all the circles. Outsourced ATP machines have been installed at 50 locations. 67 More SEVAK ATMS will be installed by Oct 06 Outsourced Mobile Collection Centres will be started

24. High Voltage Distribution System Area Estimated Cost (Rs Crore) Pune, Rastapeth8.39 Nashik0.6 Vasai1.75 Thane, Mumbra0.7 Nagpur, Laskaribaug7.85 Jalgaon5.69 Aurangabad9.25 Nagpur, Binaki5.88 Kalyan, Kon0.98 Amravati8.24 Total49.33

25. DRUM Project Urban division- I, Aurangabad Selected as pilot site. Project to be implemented with the assistance of USAID, MoP. DPR preparation completed. Cost of the Scheme:- Rs. 131 Crores. Scheme submitted to PFC on 6th March for financial assistance, under APDRP scheme. Ten divisions identified as shadow Units to compete with Aurangabad. Invitation of Tenders for various works in progress at Aurangabad Zone

26. For Circles with above 40% Distribution losses -3% reduction in every year For Circles having losses between 30% to 40% - 3% reduction in every year for first three years and 1.5% in next two years For Circles having losses between 25% to 30% - 3% in first two years and 1% in next three years For Circles having losses between 20% to 25% - 1.5% in first two years and 1% in next three years Companys Target for Loss Reduction over 3 years 28% 25% 22% 19% (FY 05-06) (FY 08-09) Reduction in Distribution Losses

27. Circle-wise Distribution Loss (%) & Target Loss (%)

28. Circle-wise Collection Efficiency (%) CIRCLE FY 2004-05 FY 2005-06 Akola99.4092.87 Amravati97.3993.82 Buldhana98.7492.06 Yavatmal97.9889.53 Aurangabad (U)98.6298.68 Aurangabad (R )92.2283.50 Jalna92.7189.91 Parbhani69.8662.23 Bhiwandi62.8068.20 Thane (U)97.6597.01 Washi101.1197.90 Kalyan I101.9699.59 Kalyan (U)103.1299.21 Pen108.92103.17 Vasai99.9897.52 Ratnagiri95.9894.61 Sindudurg99.64100.25 Ganeshkhind (U)99.80101.16 Pune (R)100.8393.68 Rastapeth (U)101.22101.06 CIRCLE FY 2004- 05 FY 2005-06 Beed70.8166.84 Latur92.5582.73 Nanded93.7682.77 Osmanabad93.7972.43 Nagpur (U)101.64102.27 Nagpur (R )100.3296.56 Bhandara102.6295.73 Chandrapur100.4697.34 Gadchiroli100.6692.77 Gondia102.6295.73 Wardha106.47103.1 Anagar99.1386.39 Dhule100.0789.34 Jalgaon96.6386.71 Nasik (U)100.63104.2 Nasik (R )98.0494.66 Kolhapur98.4795.86 Sangli100.2597.56 Satara96.0993.82 Solapur101.0384.25

29. Normal Billing as on 31 st May 2006 Circle-wise Normal Billing ZONENormal Billing % NAGPUR (U)90.88% KOKAN89.43% KOLHAPUR89.27% BHANDUP (U)85.38% AMRAVATI84.66% PUNE83.25% KALYAN82.11% NAGPUR81.65% NASIK77.89% LATUR75.06% AURANGABAD72.02%

30. Circle-wise Normal Billing (%) as on 31 st May 2006 CIRCLE Normal Billing Akola81.74 Amravati88.43 Buldhana82.34 Yavatmal85.18 Aurangabad (U)80.49 Aurangabad (R )74.46 Jalna67.21 Parbhani64.47 Bhiwandi45.92 Thane (U)89.82 Washi88.34 Kalyan I80.92 Kalyan (U)79.60 Pen76.94 Vasai88.40 Ratnagiri88.23 Sindudurg91.55 Kolhapur90.80 Sangli90.25 Satara90.15 CIRCLE Normal Billing Solapur84.21 Beed60.19 Latur75.51 Nanded78.93 Osmanabad85.41 Nagpur (U)95.20 Nagpur (R )83.71 Bhandara84.45 Chandrapur83.97 Gadchiroli75.26 Gondia82.67 Wardha80.80 Anagar77.04 Dhule76.01 Jalgaon72.26 Nasik (U)85.86 Nasik (R )80.50 Ganeshkhind (U)86.89 Pune (R)79.17 Rastapeth (U)83.54

31. Zone-wise RCI Arrears ZONE RCI Arrears Amount (Rs.Cr) Mar04Mar05Mar06May06 NAGPUR240493120 NAGPUR (U)42403843 AMRAVATI42353246 KOKAN37536973 KOLHAPUR118928183 NASIK1111018896 KALYAN28015693101 PUNE300187127113 LATUR207175160163 AURANGABAD184140161167 BHANDUP (U)337431472490 Circle-wise RCI Arrears

32. CIRCLEMar06May06 Akola1317 Amravati1013 Buldhana48 Yavatmal57 Aurangabad (U)2122 Aurangabad (R )98 Jalna5256 Parbhani7879 Bhiwandi334346 Thane (U)115122 Washi21 Kalyan I1415 Kalyan (U)1821 Pen3637 Vasai2326 Ratnagiri6771 Sindudurg21 Ganeshkhind (U)3130 Pune (R)3726 Rastapeth (U)5956 CIRCLEMar06May06 Beed8789 Latur1213 Nanded26 Osmanabad3334 Nagpur (U)3436 Nagpur (R )46 Bhandara32 Chandrapur33 Gadchiroli22 Gondia55 Wardha156 Anagar2021 Dhule1415 Jalgaon2529 Nasik (U)69 Nasik (R )2021 Kolhapur49 Sangli88 Satara44 Solapur1920

33. No. of RCI connections pending as on 31 st May 2006 CircleRCITotal Akola232682332441 Amravati190277332012 Buldhana173258311821 Yavatmal1962150502162 Aurangabad (U)1880341742295 Aurangabad (R )53372261825745 Jalna38361891324157 Parbhani53452301835758 Bhiwandi388913832155487 Thane (U)42657421255132 Washi641515423948351 Kalyan I6453980577490 Kalyan II39167541054775 Pen2127206302363 Vasai5571864456480 Ratnagiri24572671022826 Sindudurg1238158581454 Kolhapur41364603084904 Sangli54296021676198 Satara56166741726462 CircleRCITotal Solapur68695212187608 Beed79654031858553 Latur77742501198143 Nanded75933331738099 Osmanabad43952221204737 Nagpur (R )2282103842469 Nagpur (U)2185825301 Bhandara154315241582 Chandrapur1774146291949 Gadchiroli4414118500 Gondia26357275 Wardha635068 A'nagar4302258884648 Dhule1977173322182 Jalgaon25798274 Nasik (U)1331644512026 Nasik4769201475017 Ganeshkhind (U)30179402944251 Pune (R )990489834411146 Rastapeth (U)337010864194875

34. Grievances Redressed in April 2006 Received390 Redressed341

35. Progress of call centers (July 2006) Call Centers

36. PROGRESS OF CFC (July 2006) CFC