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

Karnataka
companies commercially viable. In the interim period, the State Government will
have to give considerable administrative and financial support to the new private
owners. It could be asked why they (State Government) could not do these things
when they owned the distribution companies. The main concern is that the State
Government should build sufficient public and political opinion in support of
restructuring so that when they decide to, they could move forward without any
hitch. In this regard, they could learn from the experience of Delhi. 17
FORMATION OF KTPCL AS THE SUCCESSOR TO KEB
The Karnataka Electricity Reform act and rules made the Karnataka Transmission
Corporation Limited (KPTCL) the successor entity for the erstwhile KEB and initially
all functions performed by the KEB were ipso facto transferred to it. In the Second
Transfer Scheme issued in 2002, the distribution functions and assets relating to
distribution were transferred to the four DISCOMs created with effect from 1 June
2002. The staff was required to opt for absorption in the DISCOMs, and subject to
availability of slots to accommodate them, they were to be absorbed in the DISCOMs.
The process and mechanism adopted for the restructuring of the KEB through the
medium of KPTCL was appropriate and efficient. But in actual practice, the
DISCOMs continue to look up to KPTCL as to a big brother to solve their problems.
They have not yet attained the expected and required freedom from the linkage. Partly
this may be because of the common work culture and history. But more so, because
the personnel are still borne on the cadre of KPTCL, though they work in different
DISCOMs. Moreover, the managing director of KPTCL functions as the chairperson
of all DISCOMs, which though intended to ensure overall coordination, would go to
retain the pre-eminent role of KPTCL over the DISCOMs.
Till recently, DISCOMs were reportedly relying on KPTCL for many functions such
as power purchase, raising finances, etc. This trend has been partly reversed; but needs
to be reversed further, and efforts must be made to make the DISCOMs totally
independent and autonomous entities, as was envisaged in the restructuring proposals.
Merely clothing them with corporate veil will be of no avail, unless they are
encouraged to function as corporate bodies in letter and spirit.
17 S.L. Rao: Governing Power; page 178 -179.
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