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

Karnataka
Different approaches may be possible in respect of the issue of disinvestments
in the power sector companies. One cannot however pre-empt the route that
policy makers must adopt in this regard. Further, even the extent of dilution of
equity in a concern will be a matter of major policy issue. However, there is no
denying that public participation in the equity base would accentuate the
autonomy and accountability of public corporate bodies, and will make the
managements more responsive to the corporate objectives. Viewed from this
angle, there is a strong case for offering part of the shareholdings of KPCL and
DISCOMs to the public, including the employees of the companies themselves.
It would be advisable therefore to revisit the recommendations of the FDP
consultants regarding the issue of privatisation. Meanwhile, a pre-determined
portion of the shareholdings of KPCL and DISCOMs, say 26 per cent, could be
offered to the public. Similarly, without prejudice to the option of finding
strategic partners, the Government of Karnataka must examine the ways and
means of a further financial restructuring of the DISCOMs to make them
sufficiently attractive so that a percentage of the shareholdings could be offered
to the public. These measures will have to be considered in depth with the help
of consultants and experts in the field; but a step in that direction would take
the restructuring process to logical conclusions.
(M) HUMAN RESOURCES DEVELOPMENT
Integration of Staff with DISCOMs
The reluctance of the staff to opt for the restructured companies, though they
had signed the tripartite agreement, may be due to their apprehensions of
adverse career prospects, as also to avoid possible relocations, among other
things. The need to educate the staff concerned suitably at all levels, and also to
provide adequate and just incentives to motivate them to opt for the transfers
cannot be gainsaid. The management and the State Government must jointly
therefore evolve an appropriate and efficient communication strategy to
implement the transfer scheme and work for it according to the roadmap
established.
Shortage of Technical and Commercial Staff
Against the sanctioned staff strength of all companies, the number of staff in
position is considerably less. The shortages seem to be more in the technical
and commercial areas, especially in the field, which impacts the functioning of
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