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

Karnataka
CHAPTER - 4
ANALYSIS OF THE RESTRUCTURING PROCESS
RESTRUCTURED ORGANISATIONAL PATTERN AND FUNCTIONAL
AUTONOMY
The organisational pattern adopted for the restructuring of the KEB was, by all
accounts, unexceptional. The decision to form one transmission company for the
whole State and four distribution companies on the basis of zonal jurisdiction, with a
mix of urban and rural contiguous zones, was logical and based on detailed studies
carried out by well-known consultants. The alternative of segregating them into urban
and rural distribution companies would have not only affected the financial viability
of the latter, but also would have been unacceptable from the point of their future
privatisation, which was the declared policy.
Given the appropriate organisational pattern, the restructured companies must be
functioning with efficiency and autonomy by now, after four years of the
restructuring. However, this has not happened, as mentioned before. The reasons are
following:
• Non-integration of the staff with the restructured companies even after four years
of their formation has stalled the progress of reform. The efforts taken by the
management to have the judicial orders regarding the transfers rescinded are
neither adequate nor significant. In the absence of separate cadres for each
DISCOM, the employees consider themselves as part of one entity, KPTCL, or
even perhaps, of KEB in a different name.
• The attitude of the staff and the work culture continue to be as before the
restructuring exercise. The formation of the DISCOMs has not made any
difference to the majority of the staff. There are no incentives to the staff to
move over to the new companies, and there is hardly any motivation. A revised
and more attractive personnel policy would undeniably lead to better efficiency
and autonomy. The CEOs of the DISCOMs are drawn either from the civil
service (IAS/KAS) or from the technical cadres of the former KEB. Many of
them do not have the aptitude, expertise and experience to manage complex
electricity sector. There are also frequent transfers of these personnel.
• The CEO of KPTCL is, by virtue of his position, appointed as the chairman of all
DISCOMs. This does not help the DISCOMs to function as independent entities,
but might encourage them to work more as subordinate units of KPTCL. This is
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