Ministry Draws up Plan to Turn Around SEB's by 2008
To give a boost to the financial health of state electricity boards (SEBS), the power ministry has outlined an 11-point agenda to initiate their financial turnaround by 2007-08. Suggestions include changes= in the way distribution utilities submit tariff fixation petitions to the regulators and introduction of the concept of a proper timebound business plan. The ministry has asked all utilities to adopt a multi-year tariff approach while filing the next tariff petition for 2007-08 before the state regulator. This must be undertaken before December 2006. It has also asked utilities to have a state approved business plan with identifiable goals for a three, six and twelve month period. Also, approval needs to be sought from the state regulator for automatic tariff adjustment to recover additional fuel and other unanticipated costs.
Identify one Limitation of planning involved in this case

Ministry Draws up Plan to Turn Around SEB's by 2008 To give a boost to the financial health of state electricity boards (SEBS), the power ministry has outlined an 11-point agenda to initiate their financial turnaround by 2007-08. Suggestions include changes= in the way distribution utilities submit tariff fixation petitions to the regulators and introduction of the concept of a proper timebound business plan. The ministry has asked all utilities to adopt a multi-year tariff approach while filing the next tariff petition for 2007-08 before the state regulator. This must be undertaken before December 2006. It has also asked utilities to have a state approved business plan with identifiable goals for a three, six and twelve month period. Also, approval needs to be sought from the state regulator for automatic tariff adjustment to recover additional fuel and other unanticipated costs. List the steps undertaken by Essar group in the planning process

Ministry Draws up Plan to Turn Around SEB's by 2008 To give a boost to the financial health of state electricity boards (SEBS), the power ministry has outlined an 11-point agenda to initiate their financial turnaround by 2007-08. Suggestions include changes= in the way distribution utilities submit tariff fixation petitions to the regulators and introduction of the concept of a proper timebound business plan. The ministry has asked all utilities to adopt a multi-year tariff approach while filing the next tariff petition for 2007-08 before the state regulator. This must be undertaken before December 2006. It has also asked utilities to have a state approved business plan with identifiable goals for a three, six and twelve month period. Also, approval needs to be sought from the state regulator for automatic tariff adjustment to recover additional fuel and other unanticipated costs. Inspite of the pre-planning of the power ministry SEB's may not achieve the outlined goals Explain why?

Financial Planning

Enumerate any five points of importance of financial planning.