Volume: 4, Issue: 2
INTRODUCTION
The on going power sector reforms in India has clearly revealed that the weakest link in the entire power business is the Distribution Activity. The success of any power company depends on how efficiently the distribution business of that company is run. Currently the biggest challenge faced by the distribution companies is the poor realization of revenue. While considerable effort, resources and money have been invested to formulate strategies to improve collection efficiency by the utilities, these strategies have yielded little results. This paper identifies and highlights some of the significant factors that contribute to the low collection efficiency in the Madhya Pradesh Madhya Kshetra Vidyut Vitaran Co. Ltd.(MPMKVVCL). Though this paper covers the collection inefficiencies in MPMKVVCL, the issues are general in nature and are relevant to the utility business in any developing country. Revenue or Finance is defined as the provision of money at the time when it is required. Every enterprise, whether big or small, needs finance to carry on its operations and to achieve its targets. Finance refers to management of flows of money through an organization. It concerns with the application of skills in the manipulation, use and control of money.
