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

State Reports (Vol.-III)
Study on `Impact of Restructuring of SEBs’
The period after restructuring is just one year and it may be rather early to assess the
impact of restructuring. One may have to focus primarily on identifying any
significant new approaches/processes being adopted by the restructured companies
rather than improvement in performance parameters in this short period. Nevertheless,
even a limited review of performance could indicate areas showing signs of
improvement as well as areas needing immediate attention and strong corrective
action which would help in quickly improving performances of the resultant
companies.
This report aims at achieving above objective, by focusing on initiatives of the new
companies in specific areas of:
• Planning for capacity additions;
• Management of demand;
• Services to consumers;
• Steps to improve performance parameters; and
• Building an efficient organisational set-up.
The conclusions arrived at are detailed in individual chapters. However, it can be
stated that there are positive indications in respects of first three areas mentioned
above but slow progress in the remaining two. These conclusions are based on inputs
received through replies of the companies to IIPA’s questionnaire, discussions with
managing directors and officers of the companies, with Government of Maharashtra
and representatives of the employees and consumers.
LESSONS LEARNT AND MAJOR RECOMMENDATIONS
TIMELY CAPACITY ADDITIONS
Issues associated with running an electrical Utility efficiently are large and complex in
nature. These issues become even more difficult to handle in respect of Government
owned Utilities. In the past, Governments generally gave more emphasis on providing
lower tariff for politically important sections of consumers than ensuring financial
viability of the power sector. Having addressed this specific agenda, they could
seldom exercise any pressure on the Utilities to improve their performance
parameters. non-remunerative tariffs, coupled with below par performance, which
adversely affected the financial health of the utilities.
10.2