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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
(D) The Reform Cell in the Secretariat must be strengthened by inducting senior
committed officials who could guide and support the reform process.
(E) There is need to re-establish a powerful and innovative communication strategy
to educate all stakeholders, especially the staff of the companies, the farmers, etc.
(F) The Boards of the power sector companies must be reconstituted by inducting 50
per cent professionals from outside. Efforts should also be made to develop a
strong, professional management cadre; the CEOs must be appointed on contract
basis.
(G) DISCOMs must be granted adequate autonomy required to manage their affairs
on commercial lines. The practice of appointing the managing director of
KPTCL as the chairman of DISCOMs must be discontinued. KPTCL’s Board
must be made more professional and the political appointees on its Board must
renounce those posts.
(H) Government of Karnataka must prepare a Detailed Financial Action Plan with a
specific programme to discontinue the subsidy over the medium term. The
DISCOMs, which are financially weak, must have specially designed targets and
goals to improve their finances.
(I) The new companies must be required to sign Annual Performance Contracts with
specific targets and goals related to all areas of their performance, based on their
Business Plans, which must be monitored closely. In return, they must be granted
the required autonomy and support to carry out their tasks with efficiency.
(J) A Human Resources Development Plan for the integration of the staff with the
new companies and their career advancement with adequate incentives to opt for
the new companies must be implemented early.
(K) Partial divestment of government’s shares in the restructured companies, as also
in KPCL, to the public and to the employees of these companies, will bring in
better corporate culture and accountability. A decision in this regard must be
taken after working out the strategy.
3.4