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

Karnataka
iv) M/s CMSR, Hyderabad, as Social Assessment Consultants.
Mention of the recommendations of the consultants has been made in this report at
appropriate places.
FORMATION OF THE ELECTRICITY SUPPLY COMPANIES (ESCOMS)
The implementation of the Second Transfer Scheme, issued by way of “Karnataka
Electricity Reform (Transfer of Undertakings of KPTCL and Personnel to Electricity
Distribution and Retail Supply Companies) Rules, 2002” resulted in the formation of
four area/zone based distribution companies, effective from 1 June 2002. These were
named as:
i) Bangalore Electricity Supply Company (BESCOM), which took over the city of
Bangalore Urban, Bangalore Rural, and four contiguous districts;
ii) Mangalore Electricity Supply Company (MESCOM) by carving out the
Mangalore Zone of the former KEB with ten districts 13 ;
iii) Gulbarga Electricity Supply Company (GESCOM) with operational
responsibility for five districts; and;
iv) Hubli Electricity Supply Company (HESCOM), with seven districts falling under
the Hubli Zone.
Although all functions relating to distribution and retail supply of electricity were
transferred to the DISCOMs from the notified date, the personnel were deemed to be
on deputation from KPTCL until they were absorbed in the new undertakings on the
basis of the options to be exercised by the staff, in accordance with a fair principle laid
out in the KER Rules, 2002.
An important feature of the KER Rules, 2002, which was intended to unburden the
new companies of the terminal benefits (liabilities) of the personnel of the former
KEB, is worth mentioning. This was made sufficiently clear in Rule 13(i) ibid to the
effect that: ‘the State Government, and not the DISCOMs, shall be liable for, and shall
make appropriate arrangements in regard to the funding of the pension funds, and all
statutory and other personnel related funds for the services rendered by the specified
personnel to Karnataka Electricity Board and KPTCL, prior to the effective (second)
13 Originally, MESCOM was formed with 10 districts, which were under the Mangalore Zone; but in 2005-06,
another Distribution Company, Chamundeswari Electricity Distribution Company (CESCOM) has been formed
with Mysore and four neighbouring districts with it.
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