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

Synopsis of State Reports (Vol.-IV)
Study on `Impact of Restructuring of SEBs’
investments. Realising the gravity of the situation, the State Government
decided to restructure APSEB.
1.2 RESTRUCTURING EXERCISE
Government of Andhra Pradesh appointed a High Level Committee headed by
Shri Hiten Bhaya, former Member Planning Commission, in January 1995 to
study and report on the issues relating to restructuring the power sector. The
Committee carried out a comprehensive study and submitted its
recommendations to the Government in April 1995. One of the major
recommendations of the Committee was to restructure the power sector by
separating generation, transmission and distribution functions. The reform
initiatives were started by the Government in April 1997 with the issue of a
policy statement clearly stating the objectives of the reforms and the strategy to
be followed in implementing them. Restructuring the APSEB, establishment of
an independent Electricity Regulatory Commission and tariff reform were part
of the reform strategy.
1.2.1 Reform Implementation Process
The reform and restructuring exercise in Andhra Pradesh power sector started
in June 1997 with the creation a Reform Cell headed by an officer of the rank
of Chief Engineer. Officers, with requisite skills and experience (serving as
well as retired) were selected and drafted to the Reform Cell. Ten working
groups were formed and each group was entrusted with a specific activity. Data
required was collected and analysed by the groups with the active participation
and advice of consultants. The reports prepared were presented to APSEB for
appropriate decisions. Active involvement of the Members of the Board in the
reform exercise was evident from the fact that weekly meetings were held at
Board level to review the progress of reform activities. Secretary (Energy),
Government of Andhra Pradesh, also took part in these review meetings. The
process followed greatly helped in implementation of the restructuring process.
1.2.2 Milestone Events
The following achievements greatly contributed to the smooth and successful
implementation of reforms in Andhra Pradesh:
• Carrying out negotiations with the Employees’ Associations and Unions
and entering into Tripartite Agreements, involving the State Government,
APSEB and the Employees’ Associations/Unions;
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