Report of Indian Institute of Public Administration ... - Ministry of Power

Karnataka
In order to achieve the above objectives, the DISCOMs need to be made more
autonomous by delegating additional powers to them, distancing them from (political)
interferences and influences, and by reconstituting their Boards of Directors. There is
also a need to integrate the staff of the KEB, now working on the rolls of KPTCL,
with the respective DISCOMs.
LESSONS LEARNT
The most important lesson from the Karnataka experience is that political
commitment is the most important driver for reforms. In its absence, there are very
remote chances for drastic turnarounds in this politically sensitive sector. Further,
there must be one or more strong and dedicated champions for the reform at the top
level in the Government, who must act as major catalysts for the reform efforts.
Another important lesson is the need to get the ‘buy-in’ of the staff of the organisation
to implement the reform. Unfortunately, the State Government does not appear to
have paid sufficient attention to this aspect, which has resulted in the continuation of
the work culture as was existing prior to restructuring. The delay in integrating the
staff with the new companies also has had its adverse effects on their morale and
motivation.
WAY FORWARD
The most important factors required to accelerate the reform efforts in Karnataka
include the following:
(A) Securing political commitment to the sector reform, for which the Ministry of
Power must take the initiative. A national political consensus on an acceptable
power sector reform policy, and agreement on a minimum action programme to
be implemented according to a time schedule would have to be put in place.
(B) Since one of the main reasons for the poor financial performance of the
DISCOMs is the free power to the agricultural sector, there is need to tackle this
issue at the national level. The creamy layer among the farmers must be
persuaded to pay for the power consumed by them; the possibility of linking the
‘support price’ mechanism with the metering and payment for electricity
consumed might be considered in this regard.
(C) The State Government must establish a high-level Planning and Monitoring
Agency to oversee the reform. This should have the support of an expert group
comprising of experienced professional experts.
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