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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
financial functions have not become independent due to shortage of personnel.
The utilities are dependent on data and guidance from the ASEB. Maintenance
of accounts is under a common financial head and full compliance as per the
requirements of the Companies Act regarding maintenance, submission,
auditing of accounts, independently, by each company has not been achieved.
Similarly, the data and expertise on tariff filing is in the stage of development.
The submission of tariff petitions to the Regulatory Commission has been
largely made with the help of consultants.
The utilities have to pay more attention to commercial orientation and
consumer care. In the initial stages, help of consultants may be obtained in
important activities like preparation and submission of data for tariff proposals,
etc. However, gradually expertise in these areas should be built up in the
organisation itself. There has been a strong political commitment to the reform
and restructuring process. The support given by key personnel in the
Government and at the helm of SEB, mainly its chairman, have been positive
factors in implementation of the reform process. The requirement of qualified
professional staff will be difficult to achieve unless suitable remuneration is
given. It is understood that only two chartered accountants have joined in the
last one year. There are three DISCOMs namely upper, lower and central
Assam. The scope of their activities like the quantum of energy, supply to
various consumers and the revenue involved does not appear to justify three
separate DISCOMs. The Government of Assam may like to consider the
merger of the same with a reasonable size so that control and manning of the
organisation can be done more efficiently.
6 CONSULTANTS’ RECOMMENDATIONS
The restructuring exercise was preceded by the groundwork done by ASEB and
the ADB and the broad profile was discussed during the visit of the Appraisal
Mission in September 2003.
Financial provision and distribution configuration into independent DISCOM
was made by M/s P.A. Consulting International, Jakarta under Technical
Assistance Programme from ADB. Transfer Scheme and preparation of
opening balance sheets of the new entities has been done by M/s
PricewaterhouseCoopers (PwC) under technical assistance programme from
ADB. M/s SMEC, Australia, were entrusted with the human resources
assessment and final transfer of personnel to the new entities. They have
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