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

National Report (Vol.-II)
Study on ‘Impact of Restructuring of SEBs’
(c) A Financial Restructuring Plan (FRP) to be formulated for the controlled
transition period, not exceeding five to six years, to enable the new
companies achieve financial turnaround.
6.1.7 It is also recommended that Ministry of Power may consider not granting any
further extensions of time to States for completing the restructuring process
(since continuing such extensions would go against the spirit of the EA, 2003).
6.1.8 Accelerated Power Development and Reforms Programme: Further, funds
under APDRP may be made available subject to the conditionality of
restructuring the SEBs and allowing the DISCOMs to function as fully
autonomous corporate bodies.
6.2 Detailed Policy Statements
6.2.1 As part of the political commitment and support, State Governments, which are
yet to undertake the restructuring of SEBs should bring out a Detailed Policy
Statement (DPS) which should clearly spell out the objectives and the level and
the nature of financial and administrative support during the reform process to
the Utilities after the restructuring. The policy should, inter-alia, provide for
the financial turnaround of the Utilities within a defined period.
6.2.3 It is recommended that the State Governments should be encouraged to bring
out DPS detailing the objectives, goals, methodology and process, covering all
important issues related to taking forward the reform, especially the policies
and programmes for human resources development and communication
strategy, based on the political commitment arrived at to implement the reform
measures. The DPS should also include all important events and milestones to
be achieved, together with definite time frames.
6.3 Communication Strategy
6.3.8 The contact programme with consumers and community-based organisations
including residents welfare associations, women’s groups, and students should
be worked out. Agricultural extension workers could carry messages about
energy conservation to farmers in furthering the cause of power sector reforms.
6.3.10 An internal communication strategy involving face-to-face meetings of the
employees with the CEOs, publication of newsletters, designing of a corporate
identity programme, employees’ suggestions schemes, etc., must be drawn up
as part of the strategy.
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