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

Assam
12.2 State Government Policy
The drivers for the reform and restructuring of the power sector have been a
strong political commitment for introducing efficiency and financial viability
of the power utilities. The power policy announced in January 2003 on the
reform and restructuring of power sector laid the road map for various
initiatives to be taken. The Government was taking positive steps by clearing
up the financial liabilities of ASEB and ensuring that the new utilities start on a
clean slate. The note-worthy step was to take over all the pensionary and
retirement benefits dues of the employees and involving through dialogue the
staff, the workers and the engineers in the process of restructuring. The
Principal Secretary (Power) and the Chairman of ASEB played a crucial role in
introducing the reforms and restructuring process smoothly.
12.3 Recommendations
A study of the reforms and the restructuring gone through by Assam brings out
the following key points:
(a) A strong political commitment to carry through the process of reforms is
the primary driver for starting and completing the process.
(b) A road map of the reform and restructuring in the form of policy,
objectives, strategy and proposed steps including financial restructuring is
necessary to give a clear vision how the various reforms processes have to
be taken;
(c) If the new entities have to be financially viable, they should be enabled to
start on a clean slate;
(d) Funding needs to be provided for the cross-liabilities between SEB and
the Government with a clear provision of how the shortfall in the initial
years of operation will be met;
(e) Dialogue and agreements with the workers’ unions and staff and
engineers’ associations needs to be done carefully so that the employees
become willing partners in the reform process;
(f) The expertise, experience and advice of competent consultants,
particularly in the areas of corporatisation, organisational setup, training
of staff and financial and accounting activities can be of great help in
setting up the new processes;
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